Avalara unveils AI-based innovations for tax compliance

Avalara has announced a range of customer-first innovations focused on leveraging artificial intelligence in tax compliance automation.

Avalara, a provider of tax compliance automation software, introduced several updates aimed at enhancing customer experience and simplifying tax processes.

These updates were highlighted during the Avalara CRUSH event held in Austin and emphasised AI-driven product development, integrated solutions with popular business applications, and an expanded suite of compliance solutions.

"Avalara has deep roots in AI innovation, and for years has used next-generation technologies to develop intelligent tax tools that deliver value and delight customers," said Ross Tennenbaum, President of Avalara. "Our CRUSH attendees are getting a full view of our new AI-infused products and features, in addition to hearing from our experts on Avalara's expanding compliance automation toolset and deeper integrations with the ERP and ecommerce systems businesses rely on—further demonstrating how we empower customers to confidently automate tax compliance, operate more efficiently, mitigate risk associated with tax complexity, and focus on core business building activities."

Key highlights included AI's role in enhancing efficiency in the tax compliance sector.

Avalara has introduced a generative AI chatbot named Avi, designed to offer conversational support to both customers and partners, facilitating quicker resolution of queries and issues. Avi is part of Avalara's ongoing goal to enhance user-friendliness, minimise errors, and expand compliance coverage.

Automated Tariff Code Classification is another addition, employing AI, machine learning, and natural language processing to rapidly categorise large product inventories into HS or Tariff Codes. This solution aids supply chain and logistics providers, e-retailers, and global marketplaces in calculating customs and duty taxes in near-real time.

The company has underscored its responsible deployment of AI innovations through a governance model focused on trust, planning, and oversight, aligning with data protection standards.

Jim Lundy, Founder, CEO and Lead Analyst of Aragon Research, commented on the transformative potential of AI in tax compliance: "The effective use of AI is beginning to transform the tax compliance landscape. For instance, AI is highly effective at organising items into categories, and there are numerous categorisation tasks in corporate and other tax areas. As global tax environments become more complex, intelligent tax platforms streamline manual processes and help ensure compliance."

Further innovations unveiled include enhancements to the customer experience through Avalara E-Invoicing and Live Reporting.

This solution aims to simplify compliance tasks in response to e-invoicing requirements by numerous countries. Also highlighted were AvaTax for Accounts Payable, which manages use tax calculations, and simplified integrations with partner platforms such as Oracle, Shopify, and SAP.

Avalara continues to expand its global network for tax compliance, aiming to connect businesses and governments with a fully automated platform. The company's latest developments were shared as part of its efforts to provide an improved and intuitive experience for users.