Conduct Raises $60M for AI OS in 2023 Enterprise Software

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How a $60 Million Investment Will Transform Enterprise Software

$60 million. That’s how much Conduct just raised in Series A funding, and they’re barely a year old. Founded by three ex-Palantir engineers, the London-based startup is quickly catching eyes, especially with SAP jumping in as a strategic investor. It’s clear: the race for AI solutions in enterprise settings is heating up, and Conduct’s positioning themselves right at the forefront.

The rapid follow-on from seed to Series A, especially with SAP's direct involvement, signals a shift in how established software giants are seeking to accelerate their own AI capabilities through strategic bets on emerging players. This dynamic reflects a broader industry recognition that in-house innovation alone may not be sufficient to keep pace with the speed of AI-driven change in enterprise software.

What an Agentic Operating System Means for Enterprises

Conduct is on a mission. They’re looking to create an operating system that’s quite different — an agentic one — meant to support large enterprises in managing intricate software ecosystems. These systems are often burdened with years of accumulated business logic, making them a headache to adapt when business conditions shift, like new tariffs or unexpected supply chain issues. By integrating AI agents into their platform, Conduct aims to streamline these typically laborious adjustments, allowing companies to respond quickly without the usual resource drain. It's a smart move in a world where agility is key.

Conduct's CEO, JP Haas, claims that their platform will enable both internal teams and outside consultants to implement changes quickly. That's a game changer—by skipping the lengthy tasks of code analysis and reverse-engineering. This method boosts operational efficiency significantly. But it might also alter the way enterprises engage with their software systems entirely.

The agentic OS concept directly addresses a pain point that has plagued large organizations for years: the inertia and risk associated with modifying legacy systems. By automating the synthesis and adaptation of business logic, Conduct is positioning itself as a catalyst for modernization in sectors where technical debt has historically slowed innovation. For enterprise IT leaders, this could represent a new model for managing complexity without the need for disruptive, large-scale migrations.

Companies dealing with outdated code often struggle. Conduct's approach? It's all about rapid, AI-infused change management. This could actually change the game for enterprise clients—setting a new expectation for technology partners. Who wouldn't want a smoother process in such a complex environment? That’s what makes Conduct stand out.

How SAP's Backing Fuels Conduct's Ambitious AI Plans

Conduct has made quite a splash, attracting large clients like DHL and Fraport — both leaders in logistics and airport operations. These alliances show that there's a solid level of confidence in what Conduct is doing. It's not just starting; it’s gaining traction. Backed by SAP, Conduct's tech seems ready to challenge the status quo of the enterprise software industry. Who knows what’s next for them?

SAP's engagement here is pretty interesting. By integrating Conduct's solutions directly into its product lineup, things could get more intertwined—like, really synergistic for both firms. That’s a win-win, especially considering SAP's massive customer reach. On one hand, SAP is all about pushing boundaries with tech advancements; on the other, Conduct now has a unique opportunity to develop and expand its solutions. This partnership could spark some serious evolution in their respective offerings.

SAP's decision to embed Conduct within its product suite is a strong signal to the market that established vendors are willing to integrate external AI innovations rather than relying solely on internal R&D. This move could prompt other enterprise software providers to seek similar partnerships or risk being outpaced by more agile competitors. For SAP customers, the prospect of AI-augmented flexibility may soon become a standard expectation rather than a premium feature.

Securing early partnerships with big names can really jumpstart broader acceptance. Conduct's quick ability to align with key industry players reflects how eager companies are to embrace AI changes. It's fascinating, isn’t it? That urgency underscores the shift happening across various sectors, where businesses aren't just hesitating anymore. They're diving in headfirst, driven by the competitive need to innovate.

Why AI Demand Drives Conduct's $60 Million Funding Success

Funding for Conduct is booming. This surge clearly indicates a robust interest in AI solutions tailored for businesses. Companies face mounting operational hurdles. That's where Conduct steps in — their technology fills this critical gap. With an emphasis on efficiency, it provides a flexible response to complex demands. Look at the increasing need for software that can adapt swiftly; it's hard to ignore the momentum gaining in this sector.

Conduct aims to energize the software used by the Global 200, which are the biggest revenue-generating companies. Imagine the market potential! This ambition indicates the founders' strong belief in their platform's capabilities. It also mirrors a larger trend: many industries are adopting AI to enhance operations and sharpen decision-making.

The focus on the Global 200 underscores a strategic bet on the most complex and lucrative segment of the market, where the cost and risk of software change are highest. If Conduct can deliver on its promise, it could force established players to accelerate their own AI roadmaps or risk losing relevance among the world's largest enterprises. The competitive stakes in this segment are likely to intensify as AI becomes a baseline expectation for operational agility.

AI's become a necessity for global businesses. Conduct’s path forward? It’s a clear signal — a bellwether, you might say — of how fast we could see traditional software replaced by automation driven by agents. Traditional models are under threat, that’s for sure. As these agent-based solutions gain traction, it’ll be interesting to watch how swiftly they reshape the market.

What Conduct's $60 Million Funding Means for Future Growth

Conduct employs a team of 38 in London right now. But they’re not stopping there; plans are in the works to grow to 100 employees across the UK and New York by this year’s close. Soon, a New York office will also be established—a clear sign that they’re keen on entering the US market. Funding will be channeled into go-to-market strategies along with product development, which means Conduct’s solutions will be fine-tuned for wider acceptance and scalability.

This expansion plan isn't just about growth. It's about meeting the varying demands of businesses everywhere—something Conduct must prioritize. As they expand, keeping that innovative spark alive becomes essential. Otherwise, they risk falling behind competitors who are also pushing hard for market share. The challenge is real.

By establishing a presence in New York, Conduct is positioning itself at the heart of enterprise technology procurement in the US, where many Global 200 companies are headquartered. The planned team growth suggests an aggressive push to capture market share before larger incumbents can respond with their own AI-native offerings. For potential clients, this signals that Conduct is committed to supporting global deployments and not just serving as a niche European player.

Rapid growth isn’t without its challenges. Conduct must navigate the complexities of hiring while also strategically entering new markets. Customers and competitors alike will keep an eye on how this plays out. Can they balance this tightrope of opportunity and risk effectively? It's a precarious position that could define their future.

How Conduct's AI OS Will Challenge Enterprise Software Providers

Investing $60 million into Conduct's projects isn't just a number—it's a loud alarm for current enterprise software players. With this cash infusion, Conduct's ambitious agentic operating system development puts established providers on notice. They must innovate quickly or face a very real risk of falling behind. Today's enterprises crave AI-driven solutions, not just small tweaks. They want tech that can adapt and mold itself to fit their changing demands. So, will the old guard step up their game?

Conduct is gearing up for a ride. Exciting times are ahead, but challenges lurk too. With fresh funding in hand, they’ve got a solid runway. Yet, it won’t be easy. This company needs to truly deliver on its ambitious goals related to enterprise software management. Achieving success could position Conduct as a front-runner in the industry, altering global perspectives on software development and usage.

The competitive threat to legacy providers is immediate: Conduct's approach could render traditional upgrade cycles and consulting-heavy change management obsolete for certain classes of enterprise software. This may force incumbents to accelerate their own investments in agentic and AI-driven architectures or risk losing their most valuable customers to more adaptive platforms. For IT buyers, the emergence of credible alternatives like Conduct could shift bargaining power and pricing dynamics in their favor.

Vendors in this space—especially incumbents—might be in trouble. Those who don't react swiftly could easily be left behind. Newer players are emerging, bringing solutions that cater specifically to the needs of enterprise clients. These solutions are not only faster but also more adaptable, which is a significant advantage in a competitive market. The speed and agility of these newcomers could spell disaster for slower-moving organizations.

VTechX Take

Conduct's rapid rise, fueled by a $60 million investment from SAP, indicates that established software giants are increasingly looking to partner with agile startups to enhance their AI capabilities. As Conduct aims to streamline enterprise software management, SAP's backing will likely prompt other legacy providers to pursue similar collaborations to avoid being outpaced in the competitive landscape. Watch for the number of new partnerships Conduct secures with major enterprises, as this will signal broader acceptance of their innovative approach.

Is Conduct's AI Agentic OS the Future of Enterprise Software?

As Conduct scales up and the competition intensifies, the real test will be whether its agentic OS can deliver sustained operational improvements for global giants and set a new benchmark for the industry. Will established software vendors adapt quickly enough—or will Conduct define the next era of enterprise software? The coming year could provide the answer.

If Conduct succeeds, its model could become a blueprint for how AI-native startups disrupt entrenched enterprise software markets. The next 12-24 months will reveal whether this new breed of agentic platforms can deliver on their promise of agility at scale, or if integration and trust barriers will slow their advance. For enterprise buyers, the arrival of Conduct and similar players could finally offer a credible path out of legacy system lock-in.

Frequently Asked Questions

What is Conduct's agentic operating system designed to do?

Conduct's agentic operating system is designed to help large enterprises manage their complex software ecosystems by streamlining the adaptation of accumulated business logic, allowing for rapid changes in response to shifting business conditions.

How does SAP's investment impact Conduct's operations?

SAP's investment provides strategic backing for Conduct, allowing the startup to integrate its AI solutions into SAP's products and accelerate its growth and development in the enterprise software market.

What challenges do enterprises face that Conduct aims to address?

Enterprises often struggle with modifying legacy systems burdened by years of accumulated business logic, which can slow down innovation and adaptability to new business needs.

What are Conduct's future plans for growth?

Conduct plans to expand its team from 38 to 100 employees by the end of the year and is opening a new office in New York to support its growth initiatives.