Conduct Raises $60M for AI-Powered Enterprise System Modernization

A new wave of AI innovation is set to tackle the complexities of legacy enterprise resource planning (ERP) systems, as Conduct, an AI startup founded by former Palantir engineers, has successfully closed a $60 million Series A funding round. This significant capital infusion is co-led by prominent venture capital firms Index Ventures and Iconiq, with a strategic investment from enterprise software giant SAP. Existing backers Creandum, Lucid Capital, and Booom also participated, underscoring continued confidence in the company's vision.

Conduct aims to bring clarity and operational efficiency to the often opaque and deeply customized ERP environments that underpin major global corporations. The company's proprietary AI technology analyzes the intricate code and configurations within these systems, particularly focusing on the dominant SAP ecosystem. By making these complex systems more understandable, Conduct enables faster software modifications, smoother SAP migration projects, and a substantial reduction in IT maintenance overhead. This capability is crucial in an era where businesses are increasingly reliant on agile and adaptable IT infrastructure to drive digital transformation and leverage AI initiatives.

The urgency for such solutions is highlighted by Jan Philipp Haas, CEO and co-founder of Conduct. He notes, "Every major enterprise is being asked where its AI results are? The honest answer, in most organizations, is that the systems AI needs to work on today cannot be fully comprehended by humans." Haas elaborates that decades of bespoke development have rendered these systems inscrutable, hindering both human operators and the potential for AI agents to interact effectively. Conduct's platform addresses this fundamental challenge by rendering these systems legible and actionable, laying the groundwork for advanced AI applications.

This latest funding brings Conduct's total raised capital to approximately $72 million, following a $12 million seed round completed last year. The company has already attracted a notable client roster, including industry leaders such as Daimler Truck, Heidelberg Materials, and DHL, demonstrating the immediate market need for its solutions. The enterprise software market, particularly the segment focused on ERP modernization and AI integration, is experiencing robust growth, driven by the imperative for digital agility and operational excellence.

With this new funding, Conduct plans to significantly scale its engineering and go-to-market teams. The company, currently employing around 35 individuals in its London headquarters, is also expanding its presence in the United States. This strategic expansion is designed to meet the growing global demand for solutions that can unlock the value trapped within complex enterprise IT architectures, a challenge faced by countless organizations worldwide. The investment signifies a strong belief in Conduct's ability to become a leader in the critical field of enterprise AI enablement.

The market for AI-driven enterprise solutions is rapidly evolving. As businesses grapple with digital transformation and the integration of advanced AI capabilities, the foundational need for understandable and manageable IT systems becomes paramount. Conduct's focus on demystifying ERP systems positions it to capitalize on this trend, offering a vital bridge between legacy infrastructure and the future of intelligent automation. The backing from seasoned investors like Index Ventures and Iconiq, alongside strategic support from SAP, validates the company's approach and its potential to reshape how enterprises interact with their core operational software.