Avalara, Inc. is redefining tax and compliance automation with the launch of Agentic Tax and Compliance™, a new class of AI agents designed to observe, advise, and execute entire compliance workflows autonomously. Launching October 2025, the platform promises speed, scale, and accuracy across the full compliance lifecycle.
Beyond Copilots: AI That Does the Work
Unlike conventional AI tools that assist humans, Avalara’s agents perform tasks directly in the systems where work happens—from ERP and ecommerce platforms to POS systems. Using the ALFA framework (Avalara LLM Framework for Agentic Applications), the platform combines:
- Private LLMs and proprietary small language models (SLMs) trained on Avalara’s trusted compliance content
- Agentic middleware for autonomous execution
- Scalable, multi-cloud infrastructure spanning AWS, Azure, GCP, and OCI
The result: AI agents that integrate, observe, advise, and execute, transforming compliance from a manual burden into a continuous, reliable, and intelligent process.
Agentic Compliance in Action
A Returns AI agent, for example, can ingest transaction data, apply jurisdictional logic, invoke Avalara’s APIs, and file returns automatically upon approval. Across VAT, excise tax, marketplace facilitator rules, and licensing, Avalara’s agents ensure real-time accuracy and regulatory compliance while operating 24/7.
Avalara’s “Have Your Agent Call Our Agent™” approach enables agent-to-agent collaboration across enterprise systems, multiplying efficiency across workflows and minimizing human intervention.
Why It’s Different
Avalara’s agentic stack is domain-specialized, trained exclusively on trusted compliance content to ensure accuracy. The ALFA framework combines:
- Enterprise LLMs with strict data isolation
- Proprietary SLMs built on billions of compliance data points
- Prompt libraries, reasoning engines, APIs, and SDKs for extensibility
Developers can access MCP servers today, making it possible to integrate agentic automation into custom workflows.
Redefining the Compliance Experience
By embedding AI agents directly where work occurs, Avalara removes the friction of traditional interfaces. From AvaTax to E-Invoicing, Returns, Certificate Management, Cross-Border, and Property Tax, every product in Avalara’s portfolio is being reimagined to deliver automation, efficiency, and consistent user experience.
Scott McFarlane, CEO and Co-Founder, said, “Avalara is setting the standard as the domain-specialized leader in agentic tax and compliance. Our AI agents don’t just assist—they execute, ensuring global compliance is always accurate, repeatable, and scalable.”
Why It Matters
As global tax and regulatory requirements grow increasingly complex, Avalara’s agentic approach represents a major leap forward in compliance automation. By combining intelligent execution with domain expertise and cloud-scale infrastructure, Avalara provides enterprises with a digital compliance workforce that operates continuously, reliably, and globally.
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