Avalara Launches Avi: AI-Powered Compliance Agents with Human Oversight
▼ Summary
– Avalara has launched Avi and a network of AI agents, the first AI-powered workforce for automating tax and compliance tasks while maintaining human oversight.
– The platform ensures human control with built-in checkpoints for review and approval, allowing enterprises to retain full command over compliance actions.
– Avi coordinates specialized AI agents that handle functions like tax determination, filing, exemption validation, and cross-border trade compliance.
– It integrates with enterprise systems and third-party AI agents via the Google A2A protocol, enabling secure collaboration across platforms.
– The system is powered by ALFA, a security-first framework using enterprise LLMs and proprietary models to meet performance, reliability, and data protection standards.
Avalara has introduced a new generation of AI-powered compliance agents named Avi, designed to transform how businesses manage tax and regulatory obligations. This innovative system combines artificial intelligence with essential human oversight, allowing companies to automate complex compliance workflows without sacrificing control. Avi coordinates a network of specialized AI agents that handle everything from tax calculations and filings to exemption certificate validation and cross-border trade compliance. Each step includes built-in checkpoints where human teams can review, adjust, or approve actions before they are finalized.
According to Scott McFarlane, CEO and Co-Founder of Avalara, the platform elevates automation by embedding intelligence and autonomy into compliance processes while preserving security and accountability. Customers continue to rely on Avalara’s established data protection standards, with all AI agents operating within the same secure, auditable environment the company has maintained for years.
Human oversight remains central to the platform’s design. Rather than replacing human judgment, Avi enhances it. Every compliance task, whether preparing a tax return, validating an exemption, or filing a registration, can be paused for review. This ensures finance and compliance teams retain authority over critical decisions while routine steps are handled automatically.
Avi serves as the central orchestrator for a suite of specialized AI agents, each focused on a distinct compliance function.
For example, in Global Tax Determination and Filing, agents analyze transaction data, apply jurisdictional tax rules, generate returns, and, once approved, securely submit filings to government portals. Avi coordinates these agents seamlessly, breaking down complex tasks into manageable steps and providing full visibility throughout each process.
When preparing a tax return, Avi retrieves and validates data, applies local regulations, and generates the return for team approval before filing. Only after human authorization does the system proceed with submission, confirmation, and reconciliation.
The platform supports integration across a range of environments, including the Avi Browser Agent for ERP configuration. Developers and partners can also integrate directly using Avalara’s MCP servers, extending Avi’s capabilities into custom agentic solutions.
Underpinning the entire system is ALFA, Avalara’s proprietary LLM framework for agentic applications. It incorporates enterprise-grade language models from leading providers, specialized small models trained on billions of compliance data points, and a robust security architecture. Features such as prompt libraries, reasoning engines, and retrieval-augmented generation databases ensure accuracy and reliability.
Built on a foundation of enterprise security certifications, including SOC 2 and ISO 27001, Avalara’s agentic platform offers multi-cloud resilience, real-time redundancy, and end-to-end audit trails. With support for 195 countries and seamless integration across ERPs, e-invoicing systems, and digital marketplaces, Avi enables organizations to scale compliance operations confidently, maintaining transparency and control at every stage.
(Source: ITWire Australia)