By embedding AI agents and MCP servers into enterprise compliance workflows, Avalara is evolving compliance into a smart, interoperable global framework, that operates at unprecedented scale

DURHAM, N.C., Oct. 7, 2025 -- Avalara, Inc., the agentic tax and compliance leader, today announced breakthroughs in enterprise compliance: Avi, Avalara's AI agent is now embedded directly where users work; cutting-edge Model Context Protocol (MCP) servers provide easy access to Avalara's AI-powered platform; and a series of AI innovations are newly available in its product suite.

• Learn more about Avalara's Agentic AI

These capabilities enable third-party agents and systems to more seamlessly discover and connect with APIs across Avalara's ecosystem, embedding compliance directly into customer workflows and systems. The result is a shift from isolated features to a fully interoperable framework that ensures compliance happens wherever business happens.

"Compliance is no longer a back-office burden, but a mission-critical function," said Scott McFarlane, CEO and Co-Founder of Avalara. "With Avalara's agentic solutions, our customers are cutting filing times from days to hours, reducing compliance risk, and freeing teams to focus on growth."

Avi Everywhere, Compliance at the Point of Work Powered by Agents

Avalara's AI agent, Avi, is now embedded directly where users work, observing, advising, and executing compliance for daily workflows:

• Avi Browser Extension: Guides users interactively through ERP configurations and detects compliance actions on the fly (e.g. "do you need an exemption certificate for the vendor you just added?"). It is also there to answer any compliance-related questions users may have with Avalara's industry-leading content.
• Avi in Outlook: Scans inbound invoices, digitizes and validates them for taxes, duties, tariffs, and certificates, then integrates results into ERP systems. This reduces invoice processing costs while catching compliance risks earlier.

MCP Servers: The Backbone of Intelligent Interoperable Compliance

Avalara pioneered cloud-based tax automation and quickly rose to market leadership over the past two decades. Now, as agentic AI reshapes enterprise software, Avalara is once again first to transform the category with an agentic operating model built on MCP servers, enterprise LLMs, domain-specific SLMs, AI agents, and the most expansive compliance content network—all residing in the market's most resilient, scalable, performant, multi-cloud platform.

Third-party agents and systems can connect to Avalara's MCP servers to discover and call APIs across Avalara's platform, enabling applications to connect more seamlessly and extend functionality. By embedding AI agents and MCP servers into enterprise workflows, Avalara is evolving compliance into a smart, interoperable framework, extending trusted category intelligence across global systems at unprecedented scale.

New Enterprise-Grade AI Features

Avalara is introducing a series of new AI-driven capabilities including:

• Advanced Rules with AI Visualization - Users can now create, edit, and visualize compliance rules through natural language prompts. Whether writing an entire rule, tweaking logic, or seeking AI-driven recommendations, compliance teams gain unprecedented precision, speed, and control.
• AI-Powered Reporting and Insights - Avalara's reporting suite has been reinvented with embedded AI. New intelligence surfaces anomalies, highlights trends, and generates custom reports and visualizations—helping finance teams move from reactive reporting to proactive compliance management.
• AI-Driven Global E-Invoicing - Avalara is using AI to auto-map standardized invoice fields to country-specific compliance requirements worldwide. Customers face only minimal customizations, supported by visual mapping tools—accelerating time-to-compliance while helping to ensure greater accuracy across global jurisdictions.

These enterprise-grade capabilities reinforce Avalara's leadership in compliance automation, as recognized in the IDC MarketScape Report: Worldwide SaaS and Cloud-Enabled SaaS Sales and Use Tax Automation Software for Enterprise 2024 Vendor Assessment.

Expanded AI Capabilities

Avalara is also extending its agentic platform across new compliance domains:

• Exemption Certificate Validation – Digitizes and validates certificates with AI, preventing costly audit exposure.
• Cross-Border Classification – Determines harmonized system (HS) codes and flags trade restrictions, solving two of the toughest challenges in global trade.
• Generative Tax Research – Provides compliance-critical answers with authoritative citations, leveraging Avalara's unrivaled tax content for accuracy that eclipses generic AI models.
• Property Tax – Offers AI-driven classification of fixed assets and geography assignment.

"The AI-powered search in Avalara Tax Research has been a game changer, cutting my research time by more than 80 percent," said Dakota Cox, Accounts Payable at Averitt Express, an Avalara customer.

Ecosystem and Market Rollout

Avalara is driving adoption of these innovations through its partner and customer networks:

• Agent-to-Agent (A2A) Registry: Avalara will register Avi in Google AgentSpace and in other registries, making Avalara's tax and compliance capabilities discoverable to other enterprise AI systems, helping to ensure they can be invoked wherever businesses operate.
• MCP Server Registries: Avalara will register its MCP servers in many popular marketplaces and registries for discovery and inclusion in customer agentic workflows.
• Face-to-Face Meetings: Avalara account managers are in the field meeting with partners and VARs, demonstrating new capabilities and educating customers on their impact.
• Avalara Events: The company is hosting events for developers, partners, and customers to gain hands-on access to Avalara's latest offerings.

About Avalara

Avalara is the agentic tax and compliance leader. For more than two decades, Avalara has developed one of the most expansive libraries of tax content and integrations in the industry, supporting over 43,000 businesses and government entities across more than 75 countries. The company's purpose-built AI agents automate end-to-end compliance processes with greater precision, from tax calculations and return filings to exemption certificate management and beyond. For more information, visit Avalara.com.

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