With unparalleled tax expertise and technical innovation, Avalara is redefineing compliance with a fleet of intelligent agents who initiate and execute tasks
Durham, North Carolina, October 1, 2025 /PRNEWSWIRE/ -AVALARA, INC. Today we announced the Agent Tax and Compliance™. This is a new class of AI agents that start and run compliance workflows from start to finish. Launched in October 2025, these intelligent agents deliver accuracy, scale and speed throughout the entire compliance lifecycle.
Based on tax compliance leadership, Avalara is launching the first platform for Agent Tax and Compliance™. The Avalara platform is powered by the Alfa Framework (Avalara LLM Framework for Agent Applications) that combines trusted content, specialized language models, agent middleware, and scalable infrastructure to enable real-time compliance.
“The most reliable AI breakthrough is dedicated,” he said. Scott McFarlane, CEO and co-founder of Avalara. “Just Harvey AI has transformed legal workflows and Pathai's redefined diagnostics, Avalara is now setting the standard as a domain professional leader in agent tax and compliance.”
Where others build copilots, Avalara builds AI agents
Avalara's AI agents go beyond helping you do your job. Observation, advice and execution while being embedded directly in the environment in which the work takes place. From ERP to e-commerce systems, Avalara agents once do work that requires an entire department of experts.
By combining AI agents, Model Context Protocol (MCP) servers, private LLMs, and proprietary domain-specific small language models (SLMs), all within their own ALFA framework, Avalara redefines what it means to automate tax and regulatory processes.
Agent Compliance: A New Operating Model
Avalara pioneered the concept of agent compliance, the idea that compliance should not be bolted, but instead incorporates and repeatedly equipped with intelligent AI agents.
- Integrate with business systems
- Observe data, workflows, and user behavior
- Advise actions, risk exposures and compliance obligations
- Perform calculations, filing, validation, and document classification
This shift translates from the manual burden of compliance to a more seamless, scalable and intelligent process that is always on, reliably reproducible, and executed by AI agents.
Agent Return Action
For example, an AI agent can ingest transaction data, invoke Avalara's headless return API, apply the appropriate form and jurisdiction logic, and submit files on behalf of the client after approval. As a result, we are a digital compliance expert who runs 24/7 and provides scalability, performance and peace of mind while still being up to date with the latest rules and jurisdictions.
From cloud confusion to agent scale
Avalara was born in the cloud and brought its first true SaaS model to Tax Automation. This is an industry previously defined by on-premises software and manual processes. This transformation was made possible with the rise of the broadband internet, unlocking the reach, scale and speed needed to provide real-time compliance services.
Currently, Avalara is implementing the next major disruption: agent tax and compliance. This shift is possible because Avalara is a tech company that understands taxes and not the other way around. The company is building a platform rather than a one-off tool. Clearing the same vision that led to Avalara's initial disruption, the company is once again guiding the market towards a new operating model.
Avalara's agent architecture comes with an even stronger foundation. This is a resilient, active, multi-cloud deployment that spans multiple regions and hyperscalers, including AWS, Azure, GCP, and OCI. It is horizontally scalable, architectural to support all transactions in the world, very resilient and performant. This averages response time of 15 ms due to the dispersion design.
The ubiquitous history of ubiquitousness, revealed by the integration of over 1,400 signed partners and seamless integration with almost all ERP, e-commerce, POS and back-office platforms, is now extending into the world of agents. Even if the company's agents live, Avalara's AI agents can meet them. In your application, inbox, folder, workflow, or data stream, the Avalara compliance layer moves you to where your work occurs.
“Compliance has always been complex and resource-intensive, and Avalara has worked for many years to facilitate businesses of all sizes,” he said. Jayme Fishman, Chief Strategy and Product Head of EVP, Avalara. “Now we are providing our first-time digital compliance experts with AI agents to advise and execute on a global scale, making it easier to handle the most troublesome and time-consuming tasks.
Have your agent call Agent™
Agent compliance is really strong when agents from different systems can interact. Avalara's AI agents are designed to seamlessly collaborate with other agents in the enterprise, whether they come from an ERP, PO, or e-commerce system, whether they complete speed and accuracy compliance tasks. This agent-to-agent interoperability turns Avalara into a force multiplier throughout the enterprise agent flow.
Avalara's AI agents are portable and designed to work wherever the work is going. Productivity tools, development environments, file storage systems, and even user devices can connect directly to Avalara agents to validate taxes, classify products, initiate registrations, and file jurisdiction forms. In the world of agents, Avalara does not wait for data. It fills it with the source and acts on it, ensuring greater compliance in the moments needed. This is the foundation of Avalara's new operating model. Have your agent call the agent.
Whether preparing for VAT returns in Europe, handling market facilitator rules in the US, remitting excise taxes in Brazil, verifying Canadian licenses, Avalara offers only true agent infrastructure that spans the full compliance spectrum.
Small language models overcharged with best-in-class compliance content
Avalara leverages best-in-class content repository to train its own small language model (SLM) using the world's most robust and reliable compliance content. These SLMs are designed to complement private LLMs by embedding deep domain knowledge into scalable and intelligent execution. The company's models don't ingest or learn from unreliable content and help ensure that the output is compliant and accurate to promote agent compliance.
Why Avalara Agent Stacks Are Building Differently
Avalara's Alfa combines all of Avalara's AI features to enhance everything by:
- Enterprise LLMS with data isolation from Amazon, Anthropic, Google, Meta, Microsoft, and Openai
- Unique SLM coordinated with billions of compliance data points
- Prompt Library, Guardrails, Inference, Actions, RAG Databases, Third Party Agent Frameworks, APIs, SDKS
- Extensible Agent Architecture
Developers can access Avalara's MCP servers today at https://developer.avala.com/.
A more intuitive experience of the entire portfolio
Avalara has always been the most intuitive platform for tax compliance, making it even easier with agent automation. Instead of logging in or navigating the screen, customers can ask AI agents to do the work. There's nothing new to learn. Just a natural and seamless run. From revenue to tax calculations to certificate verification, agents effectively make even the most challenging tasks easier.
Avalara has applied agentic AI to the broadest set of tax and compliance solutions in the industry, including Avalara AvaTax, Avalara AvaTax for Accounts Payable, Avalara Returns, VAT Returns & Reporting, Avalara E-Invoicing and Live Reporting, Avalara Exemption Certificate Management, Avalara Business Licenses, Avalara Tax Research, Item Classification, Avalara Cross-Border, Tariff Code Classification, Avalara 1099 & W9, and Avalara Property Tax. As each product is rethinked through an agent lens, customers can expect more automation, less friction, and a consistent experience driven by Avalara's growth library of intelligent AI agents.
It is built for where compliance goes
Avalara not only catches up to the power of attorney, but the company is shaping what comes next. With open networking, sandbox testing environments, low-code partner integration, and the ability to run active in all major clouds, Avalara will be placed as the next only AI compliance layer.
- Embedded and interoperable in thousands of systems
- Always, always complying
- Designed for developers, operators and executives
The company integrates deep domain content, agent infrastructure, and execution-enabled models to scale intelligent automation across compliance in all categories.
For more information about Avalara's AI breakthrough, visit avalara.com/ai.
About Abarara
Avalara is an agent tax and compliance leader. For more than 20 years, Avalara has supported over 43,000 companies and government agencies in over 75 countries, developing one of the widest libraries of tax content and integration in the industry. Our dedicated AI agents more accurately automate end-to-end compliance processes exempt from tax calculations, including tax calculations and exemption certificate management from return applications. For more information, please visit avalara.com.
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