Real-time tax compliance puts agentic AI accuracy to the test

AI-powered tax compliance has to meet a standard that many artificial intelligence applications don’t: The answers must be exactly right. While large language models can generate unpredictable results, tax calculations require accuracy, speed and reliability across thousands of jurisdictions.

That tension has shaped the way Avalara Inc. applies agentic AI to its transactional tax and compliance platform. The company combines agents that interpret requests and orchestrate workflows with a deterministic tax engine designed to produce precise calculations.

“When you talk about tax in any financial system, really, you have to be penny-perfect,” said Marcus Larner (pictured), senior vice president of engineering at Avalara. “You have to have a high degree of trust. You have to be highly performant [and] highly resilient. Those are things you don’t typically associate with AI.”

Larner spoke with theCUBE’s John Furrier during the Google Cloud AI Agents in Action Series on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed how Avalara is balancing autonomy with accuracy and using Google Cloud technologies to extend its agentic tax capabilities. (* Disclosure below.)