Automation, regulation, and real-time data are set to converge in 2026, reshaping how global businesses manage tax, trade, and digital operations, according to new insights from Avalara’s leadership team.
The company’s 2026 trend forecast, published this week, suggests that artificial intelligence and regulatory transparency will drive a fundamental shift in business strategy, positioning finance, tax, and compliance functions as engines of digital intelligence.
CFOs Become Data Strategists
Ross Tennenbaum, President at Avalara, said 2026 will mark a turning point for finance leaders. “CFOs are becoming data strategists,” he noted, predicting that automation will increasingly manage forecasting, reconciliations, and compliance, freeing leaders to focus on scenario modeling and growth.
Tennenbaum argued that finance teams will begin treating tax data as a strategic resource rather than a compliance burden, using it to inform pricing, cash flow, and supply chain decisions. “We’ll finally see the end of tax data sitting in compliance silos,” he said.
AI Accountability Becomes the Cornerstone of Compliance
Danny Fields, Avalara’s Chief Technology and Customer Operations Officer, described 2026 as “the year of AI accountability.” As governments worldwide push for real-time reporting, Fields expects compliance to evolve from periodic filings to continuous monitoring.
“The biggest challenge is governing automation,” he said. “As AI takes on more compliance decisions, accountability becomes critically essential.” Fields predicted that resilience and auditability will become new measures of compliance trust as organizations embed governance into their AI systems.
U.S. Tax Policy: Stability Amid Complexity
Scott Peterson, Avalara’s VP of Government Relations, forecast limited federal tax reform in 2026 following sweeping changes in 2025, but warned that “compliance complexity will rise” as states adjust to shifting fiscal pressures.
Peterson noted that states such as Colorado are already revising tax codes in response to federal changes. Sectors including software, SaaS, and lodging marketplaces may see increased audit scrutiny as states expand sales tax regimes into digital areas.
Trade and Supply Chains: Data Discipline Defines Winners
In global trade, Avalara’s cross-border leaders expect 2026 to bring some stability but ongoing complexity. “2026 will not bring calm, but it will bring clarity,” said Craig Reed, GM of Cross Border at Avalara. “The winners will be those who can anticipate change and adjust their supply chains accordingly.”
Accurate data classification will remain critical. “Bad data is more expensive than any tariff,” Reed said, emphasizing that compliance accuracy now defines competitiveness in international trade.
Carlos Mercuriali, SVP of International Business Operations, added that the U.K. is reemerging as a dynamic trade hub. “Companies that align supply chain agility with compliance precision will turn complexity into opportunity,” he said.
E-Invoicing Moves from Obligation to Advantage
With more than 60 countries expected to adopt or expand e-invoicing frameworks by 2030, Avalara’s VP of E-Invoicing and Live Reporting, Alex Baulf, said 2026 will be the tipping point when digital reporting becomes a business advantage rather than an administrative task.
“By 2026, e-invoicing will become a strategic business advantage, moving beyond a government mandate,” Baulf said. “Digital tax mandates will no longer be just about compliance, but the backbone of connected commerce.”
Baulf noted that countries such as France, Germany, and Belgium are setting the pace for global convergence, as multinationals standardize compliance processes in preparation for real-time reporting.
Retail and Lodging: AI Meets Regulation
In retail, Avalara executives predict AI will underpin compliance in digital marketplaces. “The best platforms will combine automation and compliance intelligence to fuel growth,” said George Trantas, VP of Accelerator Sales. He warned, however, that “automation removes friction, not responsibility.”
Meanwhile, the lodging sector faces increasing complexity as pricing transparency laws and local tax enforcement expand. Nicole Rogers, GM of Lodging, said operators must navigate a patchwork of state-level taxes, while Pam Knudsen, Senior Director of Compliance Services, highlighted the rise of AI in short-term rental (STR) enforcement.
“Jurisdictions are using AI-powered tools to identify noncompliant STRs in real time,” Knudsen said, adding that upcoming global events such as the 2026 FIFA World Cup will test the resilience of tax systems and enforcement technology alike.