Dili raises $21.7M to bring AI compliance to the

What happened

We already know that making AI work will mean bringing a lot of new data centers and power infrastructure online. But all those infrastructure projects may also need a bit of help from AI. S. infrastructure projects, said it had raised $15 million in Series A funding. 7 million.

“Imagine being able to read across the entire context of a company’s internal documents, all of their vendors’ documents, all of their ERP information, all of their payroll systems information, and then draw out the data that you need specifically for you know reporting or compliance,” Chaturvedi explained. Dili is already making that system work in practice.

Chaturvedi says the software is already being used at “about 700 projects,” ranging from manufacturing facilities to data centers. Notably, Chaturvedi says roughly half the projects are using Dili as an in-house software tool, while the other half outsource the entire compliance process to the company on a contractor model.

Why it matters

The Series A was led by Khosla Ventures, with participation from Allianz, Rebel Fund, Brick and Mortar Ventures’ Darren Bechtel, and Y Combinator’s Garry Tan. Dili was previously part of Y Combinator’s Summer 2023 batch. “AI for compliance” is already a common pitch among startups, but Dili focuses on the unique tangle of rules concerning construction projects, particularly those getting some kind of federal funding.

Asked for an example, Dili’s co-founder and CEO Anand Chaturvedi pointed to Davis-Bacon rules, which allow the Department of Labor to set prevailing wages for certain projects. A separate set of prevailing wage and apprenticeship rules (or PWA rules) apply to clean energy projects funded under the IRA, with various other OSHA or EPA rules in effect depending on the nature of the work.

It’s a complex set of overlapping requirements, and even small mistakes can be costly. “Non-compliance can result in millions of dollars of fines for those projects,” explains Chaturvedi. ” Given those high stakes, reliability is a central concern, but Chaturvedi believes Dili’s architecture will prevent any LLM-based fuzziness from sneaking into the final product.

Contemporary AI models are only used in the company’s data layer, the engine for taking unstructured documents and translating them into structured data. From there, a deterministic system sorts the data according to the complex-but-static compliance rules. When it works right, a task that used to take a full day’s work can now be dispatched in a matter of minutes.

What to watch

Dili is able to handle both types of contract, although Chaturvedi anticipates the industry will shift more towards the software model in the years to come. “Software and AI are going to start eating a lot of those professional services workflows, so I think more and more people will start to bring those in-house,” Chaturvedi says.

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