Avalara Positions Internal AI Development as Competitive Edge
Avalara this week signaled a shift toward building AI capabilities in-house rather than relying solely on external vendors. EVP and Chief Strategy and Product Officer Jayme Fishman used generative AI tools to develop commercial software at his kitchen table as an internal learning exercise - a move the company framed as evidence that accessible AI tools can accelerate product development when paired with willingness to experiment.
The initiative reflects a broader strategic bet. Deeper AI integration could help Avalara improve development speed, reduce costs, and maintain competitiveness in global tax automation and compliance markets. Building internal AI capabilities may also strengthen the firm's ability to adapt quickly to changing tax regulations and customer requirements.
Culture and Talent Strategy
Avalara positioned curiosity and experimentation as cultural differentiators for attracting and retaining talent. By promoting these values at the executive level, the company aims to embed an innovation mindset across teams, which could support faster feature delivery and more responsive product roadmaps.
For strategy leaders, this approach illustrates how to operationalize a learning culture. Executive-level experimentation signals that risk-taking and hands-on engagement with emerging technologies are acceptable - even expected - at the organization.
Channel and Brand Cohesion
Avalara also reinforced its channel strategy this week. Executives Sona Akmakjian and Melissa Dallmeyer were named to CRN's 2026 Women of the Channel list, validating the company's focus on partner-led delivery and indirect sales.
During an internal broadcast called "AvaChat," marketing leader Adrianna Burrows described a "marketing movement" to clarify how Avalara presents its offerings. Karen Sherwood introduced "CLUB 2027," a multi-year initiative aimed at strengthening a performance-oriented culture.
What This Means for Competitive Positioning
The week's announcements collectively point to investment in three areas: AI-driven innovation, channel programs, and employee engagement. No financial metrics were disclosed, but the pattern suggests Avalara is reinforcing both its technological and organizational foundations.
For executives evaluating tax compliance software or considering similar AI integration strategies, this signals a company actively building internal competency rather than outsourcing innovation entirely. The emphasis on culture and partner channels suggests Avalara views competitive advantage as spanning technology, people, and go-to-market execution.
Leaders interested in how to structure AI adoption within organizations may find value in exploring AI for Executives & Strategy, which covers strategic implementation and organizational transformation in AI-driven markets. Understanding Generative AI and LLM capabilities also helps executives assess vendor positioning and internal build decisions.
Your membership also unlocks:
