Conduct Secures $60M to Modernize ERP Systems

The big picture: London-based AI startup Conduct, founded by three former Palantir employees, has secured $60M in Series A funding to modernize enterprise resource planning (ERP) systems.

Why it matters:

• Opaque Legacy Systems: Decades of customization have rendered many enterprise ERP systems, particularly SAP, opaque and difficult for humans to fully comprehend, hindering AI adoption.
• AI Agent Enablement: AI agents require legible and operable systems to function effectively; Conduct provides this foundational understanding for complex IT environments.
• Operational Efficiency: The company’s software helps enterprises better understand their ERPs, accelerate software changes, support SAP migrations, and reduce IT maintenance costs.

How it works:

• Code and Configuration Analysis: Conduct’s platform analyzes existing code and configurations across diverse enterprise systems.
• AI-Powered Insights: It leverages this data with AI to generate comprehensive insights into the intricate workings of legacy ERPs.
• System Legibility: The technology makes previously opaque, customized systems legible and operable, enabling both human teams and AI agents to interact with them more effectively.

The catch: The market for ERP modernization and enterprise AI solutions is highly competitive, with established players and numerous startups vying for market share. Integrating with deeply customized legacy systems presents significant technical and organizational challenges, potentially slowing adoption despite the clear benefits.