#United States #AI Technology #Durham #Avalara #cross-border trade

Businesses Embrace Technology Amid Cross-Border Trade Uncertainties

Recent findings from Avalara, Inc. highlight a significant trend in the global business landscape—companies are increasingly relying on technology to navigate the complex and often uncertain world of cross-border trade. According to Avalara's 2026 Cross-Border Chaos Report, an overwhelming 83% of business leaders reported that operating internationally has become more complex compared to a year ago. Furthermore, nearly 39% of companies have chosen to delay entering new markets due to the daunting regulatory uncertainties and complications surrounding international trade.

The report illustrates a growing sense of unease among companies, largely attributed to the rise in tariffs, fragmented regulations, and geopolitical volatility, which are making cross-border operations more unpredictable and costly. As a result, global expansion efforts are diminishing, with only 43% of businesses pursuing new international opportunities—a clear downturn in momentum.

The Shift Toward Technology in Business Operations

Faced with these challenges, businesses are turning to technology as a means of fostering stability and certainty. The findings reveal that a striking 87% of companies now integrate Artificial Intelligence (AI) into their cross-border operations. This suggests a significant shift towards automation and intelligent compliance systems as essential tools for risk management and maintaining operational control amidst chaos.

Craig Reed, GM of Cross-Border at Avalara, emphasizes, “Global expansion hasn't lost its appeal, but the rules of the game are changing faster than ever. As trade becomes more fragmented and unpredictable, businesses are realizing they can't wait for certainty to return.” This mindset reinforces the critical role of technology and automation in streamlining compliance processes, ensuring that businesses can adapt quickly to regulatory changes without incurring delays.

Compliance: A Core Component of Growth

The report further underscores the importance of compliance as a key growth factor. Once relegated to a mere back-office function, compliance now sits at the forefront of strategic decision-making for many organizations. Notably, nearly half of the respondents expressed that regulatory changes following market entry represent their greatest risk in cross-border operations. Additional concerns include disruptions at borders and unexpected fines that could arise from non-compliance.

Regional Variations in Trade Pressures

Interestingly, the impact of trade uncertainties varies significantly by region. In the United States, the fear of abrupt policy shifts fuels a higher adoption rate of AI technologies. Meanwhile, in the UK, the challenges stemming from post-Brexit trade dynamics continue to alter how businesses strategize their operations. Australian and Indian companies face their own unique challenges with regulatory fragmentation and evolving trade alliances, which further complicate market entry efforts.

Across these diverse markets, the report suggests that technology is becoming the universal bedrock for sustainable growth, enabling businesses to manage complexity and adapt to an ever-changing environment.

Conclusion

Businesses globally are acknowledging the necessity of technology in mitigating risks associated with cross-border trade. Avalara's latest findings reinforce that as traditional modes of operation encounter increasing complexity, the adoption of technology—especially AI—will be vital for organizations to not only survive but thrive in a global market fraught with uncertainty. As companies continue to innovate and adapt, the dynamics of international trade will inevitably evolve, calling for a proactive rather than reactive approach to navigating the complexities of compliance and operational strategies.

For detailed insights, the full 2026 Cross-Border Chaos Report can be accessed at Avalara's newsroom.