Avalara, Inc., the agentic tax and compliance leader, has unveiled major AI-driven enhancements designed to embed compliance directly where enterprise teams work. Announced today, these innovations—including the AI agent Avi, Model Context Protocol (MCP) servers, and new AI-powered features—enable organizations to cut filing times, reduce compliance risk, and streamline tax operations across global systems.
“Compliance is no longer a back-office burden, but a mission-critical function,” said Scott McFarlane, CEO and Co-Founder of Avalara. “With our agentic solutions, customers are freeing teams to focus on growth while automating complex compliance tasks.”
Avi Everywhere: AI at the Point of Work
Avalara’s Avi now operates directly in the tools employees use daily:
- Avi Browser Extension: Guides ERP configuration, validates exemptions, and answers compliance questions interactively.
- Avi in Outlook: Scans invoices for taxes, duties, and tariffs, integrating results into ERP systems for faster, more accurate processing.
These capabilities bring compliance into real-time workflows, reducing costs and errors while boosting operational efficiency.
MCP Servers: Building an Interoperable Compliance Framework
Avalara’s MCP servers serve as the backbone for an agentic, enterprise-grade compliance platform. They allow third-party agents and systems to discover and connect APIs across Avalara’s ecosystem, creating a fully interoperable framework. Combined with enterprise LLMs, domain-specific SLMs, and AI agents, this architecture transforms compliance from isolated tasks into a smart, automated network embedded across global systems.
New Enterprise-Grade AI Features
Avalara has introduced advanced AI functionality across its suite:
- Advanced Rules with AI Visualization: Natural language prompts for creating, editing, and visualizing compliance rules.
- AI-Powered Reporting & Insights: Automated anomaly detection, trend highlights, and custom visualizations for proactive compliance management.
- AI-Driven Global E-Invoicing: Auto-maps invoice fields to country-specific regulations, supported by visual mapping tools for minimal customization.
Additional capabilities include Exemption Certificate Validation, Cross-Border Classification, Generative Tax Research, and Property Tax automation, reinforcing Avalara’s leadership in AI-powered compliance.
“The AI-powered search in Avalara Tax Research has cut my research time by more than 80 percent,” said Dakota Cox, Accounts Payable at Averitt Express.
Ecosystem Expansion and Adoption
Avalara is extending agentic AI adoption through its partner and customer networks:
- Agent-to-Agent (A2A) Registry: Registers Avi in Google AgentSpace and other marketplaces for discovery by enterprise AI systems.
- MCP Server Registries: Makes servers available in popular marketplaces for inclusion in agentic workflows.
- Customer Engagement: Hands-on events, meetings, and demonstrations showcase new capabilities to partners and clients.
By embedding AI-powered compliance where work happens, Avalara is setting a new standard for proactive, intelligent, and scalable tax management in enterprise environments.
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