Avalara 2026 State of Finance report: Finance and Tax Teams Report Widespread AI Adoption, but E-Invoicing Readiness Gap Leaves Many Exposed

Research finds nearly a third of organizations comply with e-invoicing mandates only where legally required, even as agentic AI becomes finance teams' top technology priority

DURHAM, N.C., Oct. 21, 2026 /PRNewswire/ -- Avalara, Inc., the agentic AI leader in global tax and compliance, today announced the findings of its 2026 State of Finance report, revealing that AI use among finance and tax professionals has become universal, but readiness for a wave of global e-invoicing and real-time tax reporting mandates has not kept pace.

Conducted in partnership with Hanover Research, the global study surveyed 400 finance, tax, and accounting professionals across Australia, Canada, the U.K., and the U.S. Respondents represent companies across industries, with 42% working at organizations with more than $50 million in annual revenue and 21% at companies with at least $500 million in revenue.

"Finance and tax teams have moved past the experimental phase of AI, but the shift toward real-time tax enforcement means confidence and actual readiness are no longer the same thing," the report notes. "Organizations that unify their compliance approach now will gain a distinct competitive advantage over those still reacting country-by-country."

Key findings from the Avalara State of Finance 2026 report:

• AI adoption is widespread: All of the surveyed finance and tax professionals report using at least one AI solution in their work, up from 84% in 2025 and 47% in 2024. AI is embedded directly into finance and ERP systems at 43% of organizations, while half of teams also report using commercial AI models.
• A global e-invoicing readiness gap persists: While 86% of finance teams say they are extremely or very prepared for global e-invoicing and live reporting mandates, only half have fully or mostly automated the process, and 30% say they comply with mandates only where legally required. With more than 80 countries now requiring or having announced e-invoicing and live reporting rules, the gap between perceived and actual readiness leaves many finance organizations exposed as tax authorities move toward continuous, real-time enforcement.
• Agentic AI is now the top technology priority for finance: More than half of organizations (53%) are making agentic AI their top technology investment, outranking cybersecurity (49%), data analytics (49%), cloud computing (42%), and ERP systems (41%). But actual adoption still lags: only 29% of finance and tax teams currently use agentic AI solutions. Looking ahead, 42% of organizations expect to spend significantly more on AI technologies through spring 2027, and another 55% expect to spend slightly more.

As governments worldwide accelerate toward real-time tax enforcement, the findings underscore a narrowing window for finance and tax teams to close the gap between confidence and actual compliance readiness. The full 2026 State of Finance report, including regional and industry breakdowns, is available now. Join industry experts on October 29 for an interactive discussion of the findings. Registration for State of Finance 2026: Modernizing tax operations is now open.

Methodology
Avalara partnered with Hanover Research to survey 400 finance, tax, and accounting professionals across Australia, Canada, the U.K., and the U.S. in March and April 2026. Where appropriate, year-over-year comparisons are included to a similar study Hanover conducted in March 2025. All percentages are based on respondents' answers.

About Avalara
Avalara is the agentic AI leader in global tax and compliance. For more than two decades, Avalara's trusted tax content, deep compliance expertise, proprietary data, and technology have helped customers succeed on a global scale. Avalara now pairs that foundation with agentic AI to help businesses execute complex compliance work while keeping people in control. Avalara processes more than 54 billion AvaTax API calls annually and supports millions of businesses worldwide. For more information, visit Avalara.com.

SOURCE Avalara, Inc.