Dili, an AI compliance startup targeting infrastructure projects, has raised $21.7M total, including a $15M Series A led by Khosla Ventures with participation from Allianz, Rebel Fund, and others. The company was part of Y Combinator’s Summer 2023 batch.

Dili focuses on the complex regulatory requirements for construction projects, especially those receiving federal funding. The CEO highlights rules like Davis-Bacon prevailing wage requirements and apprenticeship rules for IRA-funded clean energy projects, alongside OSHA and EPA regulations. Non-compliance can lead to millions in fines.

Dili uses AI models only in its data layer to convert unstructured documents into structured data. A deterministic system then applies static compliance rules. The company claims this reduces tasks from a full day to minutes. The software is reportedly used at about 700 projects, ranging from manufacturing facilities to data centers. Roughly half of those projects use Dili as an in-house software tool; the other half outsource the entire compliance process. The CEO anticipates a shift toward more software-based adoption as AI matures.