Techzine TV podcast

Pega wants to make AI performance and cost predictable

Coen or Sander Season 3 Episode 15

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0:00 | 21:51

At PegaWorld in Las Vegas, Techzine TV sat down with Don Schuerman, CTO and head of marketing at Pega, for a wide-ranging conversation about the state of enterprise AI. We discuss with him why simply dropping AI tools into existing workflows is not enough, and why enterprises must fundamentally reimagine their processes, teams, and application architectures to capture real value from AI.

Predictability is a key concept Schuerman returns to regulary. Predictability of the outcome of AI workflows, but definitely also of the cost. Accuracy is also something that needs to be determined properly when it comes to AI. As Schuerman points out during our conversation, an 85% AI accuracy rate is actually a 15% failure rate for a bank. If you compound agent errors, the failure rate will become exponentially worse. We also dig into the cost of tokens. Schuerman gets into how Pega's deterministic orchestration approach should keep AI spending controllable. It makes it possible to offer outcome-based pricing tied to workflows executed rather than tokens consumed.

Schuerman also walks us through the major evolution of Pega Blueprint. That used to be a rather basic ideation tool when it launched in April 2024, but is has been developed into a full design-to-build accelerator. On the new Customer Engagement Studio, he tells us that it brings next best action capabilities to marketing teams who don't have a data science background. The end of the conversation focuses on how to build a clear framework for measuring AI success: better processes, faster delivery, and uncompromised trust.

Key takeaways:
• Enterprises must reimagine workflows, processes, and team interactions, not just add AI tools
• AI accuracy means different things to different people
• Pega's strategy separates non-deterministic AI (design/build) from deterministic execution (run)
• Pega Blueprint now accelerates both the design phase and the build phase of application development
• Applications need to evolve from screen-and-database collections to process, agent, and knowledge collections exposed via MCP
• Outcome-based pricing charges per workflow executed, not per token burned
• Customer Engagement Studio wants to democratize next best action for non-data-science marketing teams
• Infinity 26 supports bring-your-own models, including Mistral for European clients

Chapters:
1:13 - Reimagining enterprise workflows and teams for AI
1:35 - The predictability problem: why 85% accuracy isn't enough
2:25 - Predictability of cost and the tokenomics challenge
3:32 - AI across design, build and run: a smarter architecture
4:41 - Pega Blueprint: from ideation tool to full build accelerator
8:53 - Rethinking application architecture: apps as MCP targets
11:41 - Outcome-based pricing: paying per workflow, not per token
15:49 - Customer Engagement Studio: next best action for all
18:31 - Infinity 26: platform flexibility and bring-your-own AI models
20:05 - Measuring success: better, faster, and trustworthy