"I think we're a long way from general intelligence, where the AI becomes nearly sentient, a threat to humanity. I think a lot of those statements and assertions are just wildly overblown."

Thus spoke Alan Trefler, Global CEO of multinational software company Pegasystems, during a conversation with CNBC-TV18.

There's no denying that ours is a rapidly changing world in which artificial intelligence (AI) has become ubiquitous and the reason for a tectonic shift in the tech landscape. Some caution against the rapid development of AI, and those who favour it. Then there are those like Trefler, who call for calmer minds.

Trefler says he prefers to think of AI as "augmented intelligence" rather than artificial intelligence, as the technology in its current form is not true intelligence; it is not sentient and depends on machine learning to adapt and evolve..

Calling many fears and statements about the potential of AI "overblown," Trefler says, "I think that we're in the middle of a hype cycle around AI, and particularly around generative AI, which serves to obscure what's going on, what could be really good about it."

"I think of artificial intelligence or AI, as not being a very good set of words to describe — I prefer to refer to AI as augmented intelligence."

He believes that the current technology only serves to help users add the power of data and the power of other people's learnings to the work they do. "I think we can incorporate both using analytical AI, which is very different from generative AI."

The Influence of chess on Pegasystems

Trefler's journey into the world of business and technology was profoundly influenced by his early experiences with chess. He acknowledges the game's role in shaping his strategic thinking, decision-making, and ability to handle victory and defeat. He draws parallels between chess and business, with special emphasis on the importance of evaluating different moves, pattern recognition, and the need to question and adapt one's strategies constantly.

"I think that chess is a wonderful game ... I think it really helps develop logic and understanding and, to a degree, develop some level of patience to be able to stay focused for a period of time ... if you're going to play a series of games, you're going to win some and lose some; the reality is you then get to evaluate whether your overall performance was something that you feel good about or needs improvement. And I think business is very much the same," he says.

According to Trefler, there's no absolute winning in business and it is not "a healthy behavioural pattern" to adopt that cutthroat philosophy. "You risk being classified a psychopath ... you want to look at the aggregate and decide — are you getting the outcomes you want and feeling good about how you're doing?"

AI: The challenge of flawed sources

Trefler acknowledges that the growth of generative AI poses a significant challenge: the propagation of flawed information. As AI tools generate content from a vast array of sources, the quality and accuracy of the information can vary greatly.

He even cited an example of a US lawyer who used Gen AI to draft a legal brief and got rapped on his knuckles. "The lawyer who I guess was both lazy and incompetent asked AI to write a legal brief, and it wrote an excellent-sounding legal brief that read beautifully and is referenced to support its conclusions — legal cases. But when they looked up these legal cases, they realised they had simply been manufactured and were not real cases. The lawyer was censured."

Regulation and oversight

Closely following the explosion of AI were several governments calling for regulation and oversight. At the recent G20 Summit, under the New Delhi Declaration, the G20 countries decided to pursue a “pro-innovation” regulatory approach with the aim of maximising benefits while accounting for the risks associated with AI.

However, Trefler suggests that, in many cases, existing regulations and controls are sufficient to address instances of AI misuse or harm. He also raises concerns about the demand for regulation, driven by the overhyped perception of AI's risks. Trefler says there is a need for more comprehensive and well-thought-out regulations rather than rushing into regulation prematurely, supporting a balance between government oversight and self-regulation in the industry.

"I look at the regulations and feel they are not going to do that much and keep up with the changing pace. So we may need to regulate it, but I think regulating it now may be premature... I'm in favour of having some government oversight and regulation around concepts like privacy — what does it mean to use the information about somebody in a variety of settings or to sell that information?" he says.

Implementing 'augmented' intelligence

Trefler speaks about how Pegasystems, a company specialising in Intelligent automation, uses AI to streamline workflows. He explains how AI is integrated into its systems to make tasks more efficient and help train new employees.

"If you're a big business and a customer says they are moving, what are the different steps you want to take to make sure you can continue to have them as a customer and maintain the interaction with them? We're using AI to help inform the people who do this and make their job much easier to be able to tell the system what it wants to do," he explains.

AI's effect on Pegasystems

Trefler reflects on the core impact of AI within his company and highlights the company's focus on intelligent automation and decision-making through machine learning (ML).

"We do two major things. We help automate work, and we all make sophisticated decisions based on machine learning. And both of those are very grounded in improvement by AI. The first one is going to be further empowered by AI to make it easier for people to do the automation. The second is learning from data, learning from behaviour. So for us, it's very much at the centre of what we do," he explains.

Impact on jobs

There has also been a lot of talk and fears of the advent of AI hurting jobs and people's livelihoods. Trefler says disruption is inevitable whenever a new technology emerges and does not shy away from the fact that some people's jobs are going to be affected as AI starts to streamline workflows more and more.

"Streamlining also sort of implies that some people might become redundant. I'm not saying that is the case (in our company). Let me talk about translation (which the company needs to do for several languages) — you know you still need people to look at the final output and make sure it's accurate," Trefler says, adding, "It's going to radically change some people's jobs. But we're a growing company and so, for us, it is less of an issue. I think there are companies where it will be inevitable when there's a pretty significant technology change."

The interview touches on the potential impact of augmented intelligence on employment. Trefler acknowledges that some jobs may be transformed or even become redundant as AI streamlines processes. He points out that education and journalism, particularly, have experienced significant changes due to AI and digital transformation. While some jobs may be under threat, he believes that those who adapt and learn to work alongside AI can benefit from the technology's advancements.

India's AI journey

With his company heavily invested in India, Trefler offers insights into how India is responding to the AI revolution. He sees India as a source of great talent and technological innovation, well-positioned to become a global leader in AI.

"India because of the tech focus that's existed over the last 10-15 years, is very well positioned to be home to leading companies, and I know that's a goal of the government to be able to do that and I think it's in an excellent position to achieve that."

Also read: Satya Nadella says Microsoft will lead the way in the 'new era of AI'

(Edited by : Shoma Bhattacharjee)