Avalara touts ‘agentic AI workforce for tax and compliance’

Tax solutions provider Avalara announced that its Avi AI, first launched as a chatbot, is now an AI agent that will orchestrate an entirely new network of other AI agents that are being touted as, effectively, an agentic AI workforce for tax and compliance. 

Avalara’s Agentic Tax and Compliance platform has AI handle every core compliance function, from tax determination and filing to exemption certificate validation, registration, property tax, reporting and research, each with built-in checkpoints for human review. When a user assigns a task, Avi breaks it into steps, delegates to specialized AI agents and coordinates their actions, providing visibility throughout the process. For example, when a user asks Avi to prepare a tax return filing, Avi retrieves and validates data, applies local rules, generates the return, and submits it for approval, filing only when the user says so. 

Beyond tax filings, the agents can also scan new customer uploaded exemption certificates, cross-verify data with authoritative registries, and update records; classify products according to Harmonized System or tariff codes, determine duties, and check against trade restriction lists; prepare registration documents, file with local authorities, and receive and store business and license registrations. They can also acquire fixed asset data, classify it for location and tax depreciation, and prepare and file personal property tax returns. They agents can continuously generate reconciled, auditor-ready reports, and provide AI-powered deep insights, linking every number to its source transaction. The agents are able to scan and summarize primary tax sources — laws, rates, rules and regulatory updates — surfacing Avalara’s tax and compliance content with verifiable citations. They can connect directly to government-certified e-invoicing endpoints and enable every invoice to be validated, compliant and audit-ready before it’s sent; and, finally, automate how companies handle tax authority notices, and use AI to classify, route and track notices to resolution. 

If a user wants additional capacities, the platform also allows any third-party AI agent that supports the Google A2A protocol to securely collaborate with Avalara’s AI agents, which the company calls “Have Your Agent Call Our Agent.” This is enabled through Avalara’s previously announced MCP servers, which allow AI agents from different platforms to interact with each other.

Users can access the platform from a variety of points. They can use the Avi Browser Agent, which automates ERP configuration and setup with Avalara, and assigns tasks to Avi; Avi for Microsoft Outlook, which digitizes inbound invoices and applies tax rules in real time;  Avi for NetSuite, which boasts one-click configuration and setup, and assignment of tasks to Avi; or Avi for Gemini Enterprise, which leverages the A2A technology to interact with Avalara’s network of agents. Developers can also integrate directly via Avalara’s MCP servers, available at developer.avalara.com. 

“Avalara’s increasing agentic capabilities bring intelligence and autonomy to the next level, without compromising control or security,” said Avalara CEO and co-founder Scott McFarlane in a statement. “Our customers have trusted us to protect their data and compliance processes for decades, and Avalara’s new AI agents operate within that same secure and auditable Framework.”

Global rollout begins in Q4 2025. Early access programs are live with select enterprise partners.