AI Handles Tax Operations

▲ Photo: AI-generated image

Artificial intelligence (AI) has begun to take on corporate tax calculation and declaration preparation, going beyond everyday shopping and schedule management. As tax and compliance software company Avalara unveiled 'Avalara Aviator,' which connects multiple AIs to handle tax operations, AI agents are making a full-fledged entry into specialized corporate tasks.

■AI Connects and Processes Tax Operations

Avalara announced 'Avalara Aviator,' an AI service for tax and compliance tasks, on the 24th. This service is designed to connect AI agents from various fields to handle complex tasks such as tax code classification, transaction data review, exemption certificate verification, and tax calculation table creation.

Existing tax software focused on automating individual tasks like tax calculation or declaration form preparation. However, actual operations require gathering data, obtaining approval from the person in charge, and comparing results from various systems.

Avalara has enabled AI to connect these previously disconnected tasks. If a user requests, “Create tax rules for a new product,” AI verifies relevant regulations and drafts the rules. It then simulates the results when applied to past transactions and checks for conflicts with existing rules. Once the user reviews and approves the content, the final rules are applied.

■Humans Make Final Decisions

Avalara Aviator is not a system where AI makes all decisions. AI investigates data, compares results, and proposes necessary actions, but significant changes must be verified and approved by a human.

Avalara described this as 'humans delegating tasks but directly controlling important decisions.' The work performed by each AI is recorded and designed to be verifiable later.

This structure is crucial in tasks with high responsibility for errors, such as tax and accounting. If AI incorrectly applies tax rules or misclassifies declaration data, companies could face additional taxes or administrative penalties.

■Will Work Hours Decrease?

Tax professionals spend a lot of time annually on repetitive declaration tasks and data verification. If AI gathers relevant data and compares calculation results, professionals can focus on important judgments and handling exceptional situations rather than simple verification tasks.

Avalara explained that the time spent on tax operations can be reduced from days to minutes of review work. However, this is an expected effect announced by the company, and it cannot be concluded that all companies will achieve the same results.

The service will initially be provided to existing customers at no additional cost and is scheduled for official release after a European event next month. In the future, the scope of application plans to expand to Enterprise Resource Planning (ERP), e-commerce, finance, and collaboration services.