AI steps in where legacy ERP projects are stalling
Enterprise system modernization is the process of upgrading decades-old core applications, such as ERP and CRM platforms, so they can support automation, AI, and faster business change without the cost and delay of traditional large-scale IT programs. For many enterprises, this means untangling layers of custom code, aging SAP instances, and brittle integrations that slow any transformation effort. The recent funding for Qorelo and Conduct highlights how investors now see AI as the missing layer that can automate SAP migration automation, expose buried business logic, and cut months from project timelines. Rather than replacing entire stacks, both companies focus on making existing systems easier to operate and ready for AI-powered ERP transformation, which is where most enterprises feel the pressure today.
Qorelo targets the SAP 2027 deadline with migration automation
Qorelo has raised $3.5 million (approx. RM16.1 million) in seed funding to automate SAP migration work as customers race towards the SAP S/4HANA 2027 transformation deadline. The startup provides an AI-powered intelligence layer that automates functional delivery workstreams across ERP upgrade and migration projects built on SAP software. By reducing repetitive delivery tasks, Qorelo says it can shorten project timelines by up to 45 percent and ease resource constraints that have made ERP modernisation projects slow and costly. Its platform also acts as a continuous system of record for ERP delivery, keeping operational data ready for future AI applications. Qorelo is already working with large enterprises in the DACH region, including a major German automotive company, and plans to use the funding to deepen product development and expand engineering, SAP expertise, and enterprise sales.
Conduct makes complex enterprise systems legible and AI-ready
Conduct has secured €51 million ($60 million, approx. RM276 million) in Series A funding to build what it calls an AI operating system for enterprise software. Founded by former Palantir engineers, the platform ingests custom code, configurations, dependencies, and integrations across systems such as SAP, Salesforce, Oracle, MES, and WMS, then maps how every component links to business logic. This mapping lets teams ask targeted questions—such as which objects are affected by a migration or where a pricing rule lives—and then have Conduct generate the code, tests, and implementation steps needed to make changes safely. According to Conduct, customers are seeing 30 percent or more acceleration in transformation workstreams and time-to-value for new features. SAP has named Conduct a strategic AI partner for SAP Cloud ERP transformations, and the company is partnering with BCG and NTT DATA Business Solutions.
One shared bottleneck: slow, costly legacy system modernization
Despite different product focuses, Qorelo and Conduct both target the same structural bottleneck: enterprises struggling to modernize deeply customized, mission-critical systems fast enough. Qorelo focuses on SAP migration automation for S/4HANA, automating functional workstreams so large ERP programs can finish on time with fewer specialist consultants. Conduct concentrates on making existing landscapes legible, so teams can understand dependencies and execute change without reading millions of lines of custom code. Together, their $63.5 million (approx. RM292.1 million) in new capital reflects a funding thesis that legacy system modernization funding will favor tools that speed change rather than full system replacement. Instead of ripping out core ERPs, investors are backing AI-powered ERP transformation layers that sit on top of current systems, reduce manual labor, and turn opaque software estates into AI-operable assets.
Why investors are betting on AI-powered ERP transformation layers
The combined funding rounds reveal a clear pattern in enterprise system modernization: capital is flowing into AI layers that help existing systems deliver AI outcomes faster. Conduct’s round sits within a broader funding environment focused on enterprise AI infrastructure, agent governance, ERP modernisation, workflow automation, and industrial AI, where similar tools such as Zalos, Interloom, Cognee, and NeuralTrust also operate. Investors see an execution gap: core systems of record were built for stability, not rapid change, yet business leaders now demand visible AI results. By mapping business logic, automating delivery workstreams, and shortening the time from decision to execution, Qorelo and Conduct promise to turn static systems into change-ready platforms. Their momentum suggests that AI-powered ERP transformation will be defined less by new ERPs and more by intelligent orchestration on top of what enterprises already run.
