In a major move for tax compliance technology, Sovos has expanded its Sovi AI platform. This is to automate product tax code classification and data mapping. The update targets enterprise clients who must manage rapid regulatory shifts and large product catalogues.
Automated Product Tax Code Classification
Sovi AI now uses machine learning to analyse product attributes and source data formats. It analyzes data from ERP and e-commerce systems such as SAP, Oracle, and NetSuite. The system recommends correct tax treatments with confidence scores. So compliance teams review only edge cases. By replacing manual classification, organisations can onboard new products and adapt to evolving regulations far faster.
Streamlined Data Mapping for VAT and SUT
Meanwhile, the expanded platform also automates the mapping of source data to compliance-ready formats for both Sales & Use Tax (SUT) and VAT filing services. Instead of repetitive file reviews and manual reconfigurations when data structures change, Sovi AI takes over the heavy lifting. As a result, firms reduce dependency on internal tax resources and better scale their operations.
The latest release underscores Sovos’s vision to turn compliance from a cost centre into a growth enabler. CEO Kevin Akeroyd says the tool replaces “manual and mundane tasks with tax compliance intelligence. The intelligence learns, adapts, and is flexible to the needs of the individual customer.” At the same time, Chief Product Officer Swati Garodia emphasises that embedding Sovi AI into core workflows boosts accuracy. Also, keeps enterprises ahead of regulatory change.
For global organisations processing billions of transactions annually, speed and accuracy in indirect tax management are vital. Sovos reports its Tax Compliance Cloud processes over 16 billion transactions across nearly 200 countries. It also supports more than 100,000 customers, including half of the Fortune 500. The new features will roll out by invitation to early adopters starting in December 2025.
Alongside dealing with classification and mapping, the growth also indicates a bigger change. The change is that compliance automation is no longer something the company can decide. It is a strategic necessity. Companies such as Sovi AI that use the appropriate tools can lower the risk and put their resources to good use. Also, grow without interruptions. Hence, there might be a notable increase in the use of machine-learning-based tax compliance solutions. The solutions are in the finance and enterprise sectors.
Ultimately, for CFOs, tax directors, and compliance teams, this development from Sovos represents a meaningful step toward smarter compliance operations. It combines tax domain expertise, AI-driven automation, and enterprise data integration. This helps to convert the indirect tax from a liability to be a business enabler.
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News Source: Businesswire.com
