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Avalara Unveils Agentic Tax and Compliance™

Avalara, Inc., a trailblazer in tax technology, just introduced a groundbreaking solution: Agentic Tax and Compliance™. This new offering comprises AI agents designed to take on the rigorous tasks of tax compliance from initiation through execution—completely transforming the compliance landscape. Scheduled for launch in October 2025, these intelligent agents promise to enhance accuracy, scalability, and efficiency throughout the compliance lifecycle.

Revolutionizing Tax Compliance with AI Agents

The implementation of these AI agents marks a significant leap in Avalara's ongoing mission to simplify tax compliance. With the aid of the ALFA framework (Avalara LLM framework for agent-based applications), Avalara's latest platform takes advantage of trusted content and specialized language models combined with agentic middleware. The result is a system that delivers real-time, reliable compliance executions, addressing the needs of modern businesses.

CEO and co-founder Scott McFarlane articulated Avalara's vision, stating, "The most trusted AI breakthroughs are purpose-built," reaffirming as Avalara aims to set a high standard in tax compliance. By positioning their agents not just as helpers but as active participants in the compliance workflow, Avalara distinguishes itself from rivals who merely develop auxiliary tools.

Features and Capabilities of Agentic Compliance

Agentic Tax and Compliance™ is based on the innovative concept of 'agentic compliance', which integrates compliance into business operations instead of treating it as an external or secondary task. The new AI agents will:

• - Integrate seamlessly with business systems, facilitating a more cohesive workflow.
• - Observe the data, workflows, and user interactions to recommend actions that align with compliance obligations.
• - Execute a myriad of tasks, including calculations, filings, validations, and document classifications, allowing businesses to focus on growth instead of compliance hurdles.

For instance, one of the AI agents launched under this initiative will simplify handling returns. It can absorb transaction data,.access Avalara's APIs, apply jurisdictional logic, and file returns on behalf of the client. Businesses can benefit from this 24/7 digital professional, ensuring they remain compliant with changing regulations and can focus their resources on scaling operations.

Pioneering a New Operating Model

Avalara’s transition from manual tax processes to a fully automated, agentic model represents a significant disruption in the tax compliance sector. Notably, Avalara roots its services in cloud technology and aims to utilize its infrastructure to deliver this new model effectively. With a resilient, multi-cloud system that spans geographies, Avalara is uniquely positioned to support extensive transaction volumes with remarkably low latency.

As CEO McFarlane suggests, the emergence of comprehensive agentic agents could fundamentally alter how businesses manage compliance tasks, essentially removing the manual burden that has long hindered operational efficiency.

A Future of Interoperability and Automation

The progressive model promoted by Avalara emphasizes interoperability among various AI agents, enhancing their collective efficacy across different functions. Whether a system's origins are in ERP, POS, or e-commerce, Avalara's agents are designed to communicate, thus amplifying task execution and improving tax compliance overall.

The implications extend beyond mere efficiency; they encompass an entire shift in culture around compliance, moving from a resource-intensive chore to automated certainty. Jayme Fishman, Avalara’s EVP, Chief Strategy and Product Officer, highlighted the burgeoning need for businesses to embrace this evolution, stating, "Now, we're delivering the first-ever digital compliance professionals to handle the most onerous tasks."

Moving Forward with Intelligent Edge

Another notable advantage of Avalara’s agentic architecture is its adaptability to modern requirements, such as low-code integration options and sandbox testing environments. This flexibility not only optimizes developer and operator experiences but also positions Avalara as a pioneer of what compliance solutions will look like in the future.

Avalara’s emphasis on rich domain content drives the capabilities of its agents further, ensuring they are equipped with robust compliance insights from trustworthy sources. This adherence to strict data integrity protects users from potential pitfalls associated with unverified information inputs, maintaining their reputation as a compliance leader.

As the company gears up for this monumental rollout, they are committed to making compliance easier for businesses worldwide. To learn more about Avalara’s groundbreaking innovations in AI-powered compliance, visit Avalara.com/AI.

About Avalara

Avalara has established itself as a leader in agentic tax and compliance solutions over the past two decades. With an extensive library of tax content and seamless integration capabilities, Avalara supports thousands of businesses globally, driving efficiency and enabling firms to navigate the complexities of taxation with ease.

For more information, please visit Avalara.com.