Pegasystems (PEGA) investor relations material

Market and technology trends

• Enterprises are shifting AI focus from broad adoption to targeted value creation, emphasizing measurable efficiency and customer experience improvements.

• Tokenomics and cost governance have become central as organizations realize the expense of indiscriminate AI use.

• Forrester's new AI platform classification highlights the importance of connecting models to enterprise workflows and governance, not just model performance.

• Enterprises are adopting federated architectures, integrating multiple platforms to minimize risk and maximize flexibility.

• Deterministic processes remain essential for cost control and regulatory compliance, with AI used surgically for tasks where it adds unique value.

Product innovation and differentiation

• Blueprint leverages multiple AI models to redesign business processes, maximizing efficiency and ensuring AI is applied where it adds value.

• Infinity Studio extends AI-driven design to the build phase, enabling users to modify workflows and interfaces with natural language, reducing the need for deep technical expertise.

• MCP (Model Context Protocol) enables seamless integration of workflows with external agents and front ends, supporting both traditional and agent-driven interfaces.

• Agentic Process Fabric provides a registry for workflows across platforms, simplifying user access and supporting federated enterprise architectures.

• The platform's visual, transparent approach allows business users to directly view and modify processes, enhancing agility and reducing risk.

Business model and customer impact

• Licensing is based on the number of cases processed, not per-user or per-token, aligning costs with business value and supporting scalable adoption.

• The per-case uplift model for AI usage ensures predictable costs and avoids runaway token expenses.

• AI-driven tools compress both design and build phases, accelerating time-to-value and reducing resource requirements for clients.

• Legacy modernization is accelerated by AI, which both increases urgency and lowers barriers by analyzing legacy code and documentation.

• Clients are encouraged to reimagine processes during modernization, not just replicate legacy workflows, to maximize efficiency and automation.