New AI-driven capabilities make tax and compliance faster, smarter, and easily embedded within enterprise workflows
India — October 7, 2025 — Avalara, Inc., the global leader in tax and compliance automation, today announced a series of AI-powered innovations that redefine enterprise compliance. The company introduced Avi, Avalara’s AI agent now embedded directly into users’ daily workflows; Model Context Protocol (MCP) servers that provide seamless access to Avalara’s AI platform; and several new intelligent capabilities across its product suite.
These advancements enable third-party systems and AI agents to easily discover and connect with Avalara’s APIs, embedding compliance at every stage of business operations. The result is a connected, intelligent framework where compliance happens in real time, whenever and wherever business takes place.
“Compliance is no longer a back-office burden, but a mission-critical function,” said Scott McFarlane, CEO and Co-Founder, Avalara. “With Avalara’s agentic AI, customers are cutting filing times from days to hours, reducing compliance risk, and freeing teams to focus on growth.”
Avi, Avalara’s intelligent AI agent, is now active where users work, advising, executing, and automating compliance tasks. For instance, the Avi Browser Extension guides users through ERP configurations and identifies compliance actions instantly, while Avi in Outlook scans inbound invoices, digitizes them, validates taxes and certificates, and integrates results directly into ERP systems. This helps organizations catch compliance risks early and significantly reduce processing costs.
Avalara’s MCP servers form the backbone of this intelligent network. They enable interoperability by allowing enterprise systems to connect with Avalara’s AI-powered APIs and extend compliance functionality across platforms. With these technologies, Avalara continues to evolve compliance into an intelligent, scalable global framework that operates across industries and geographies.
Among its latest innovations, Avalara has also introduced a set of enterprise-grade AI capabilities designed to deliver greater speed, precision, and insight:
● Advanced Rules with AI Visualization, allowing users to create or modify compliance rules through simple language prompts.
● AI-Powered Reporting and Insights, where embedded intelligence highlights anomalies, trends, and generates proactive compliance reports.
AI-Driven Global E-Invoicing, which uses AI to map invoice data to country-specific compliance requirements, reducing manual customizations and accelerating time to compliance.Avalara’s AI-driven platform also now extends into multiple compliance domains, including exemption certificate validation, cross-border classification, generative tax research, and property tax automation. To drive adoption, Avalara is collaborating closely with partners and customers through face-to-face meetings, developer and partner events, and registrations in global agent and MCP server directories such as Google AgentSpace—ensuring Avalara’s AI capabilities are accessible across enterprise systems worldwide.
For over two decades, Avalara has built one of the most extensive libraries of tax and compliance content in the industry, supporting over 43,000 businesses and government entities across more than 75 countries. Its purpose-built AI agents continue to transform tax and compliance—from calculation and filings to exemption management—with unmatched precision.
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