Businesses Lean on Technology as Cross-Border Trade Grows More Uncertain, Avalara Finds
Avalara's 2026 Cross-Border Chaos Report shows that 83% of business leaders find international operations more complex, with 39% delaying market entry amid rising uncertainty. DURHAM, N.C., Feb. 17, 2026 /PRNewswire/ -- New research from Avalara, Inc., the agentic tax and compliance leader, shows that while businesses are eager to expand globally, fading confidence in stable trade rules is forcing many to slow or delay growth amid rising regulatory complexity, tariffs, and geopolitical volatility. Read Avalara's 2026 Cross-Border Chaos Report here. Avalara's 2026 Cross-Border Chaos Report reveals that 83%1 of business leaders believe cross-border operations are more complex than a year ago, while 70%2 say trade is more complex than it was three years ago. Nearly 4 in 10 companies (39%) have delayed entering new markets altogether due to regulatory uncertainty. As a result, global expansion is losing momentum, with just 43% of businesses actively pursuing new international opportunities. Tariffs, fragmented regulations, and geopolitical volatility are making cross-border operations increasingly unpredictable, costly, and complex. In response, businesses are turning to technology to create their own certainty. 87%3 of companies now use AI in some capacity for their cross-border operations. This suggests that automation and intelligent compliance systems are becoming central to managing risk, maintaining control, and sustaining growth. In addition, it points to a fundamental shift in global trade, where trust is moving towards systems that can adapt as quickly as the rules change. "Global expansion hasn't lost its appeal, but the rules of the game are changing faster than ever," said Craig Reed, GM of Cross-Border at Avalara. "As trade becomes more fragmented and unpredictable, businesses are realizing they can't wait for certainty to return. They're using technology and automation to stay compliant, manage risk, and keep moving forward." Other findings from the Cross-Border Chaos Report include: Compliance is core to growth: Once viewed as a back-office function, compliance is now a defining factor in expansion decisions. Nearly half of respondents (49%) noted that regulatory change after market entry was their most influential risk for cross-border operations. Other concerns include border disruption (46%) and unexpected fines (38%). Technology emerges as a source of stability: Businesses are now embedding technology directly into their expansion strategies. 87%3 of respondents now use AI for cross-border operations. More than a quarter (27%) are deploying it broadly and 19% have made it central to their risk management. Rather than waiting for regulatory clarity, companies are engineering their own predictability through data-driven compliance systems and automation. One global challenge, different regional pressures: While uncertainty seems universal, its impact varies by region. In the U.S., concerns about sudden policy shifts are driving higher levels of AI adoption. In the UK, post-Brexit divergence and friction with Europe continue to reshape trade strategies. And in Australia and India, regulatory fragmentation and shifting trade alliances complicate market entry. Across markets, technology is emerging as the common foundation for sustainable growth in today's volatile trading environments. The full 2026 Cross-Border Chaos Report, including regional breakdowns and industry insights, is available to download at: newsroom.avalara.com/image/Avalara+Cross-Border+Chaos+Report.pdf About the Cross-Border Chaos ReportAvalara commissioned Censuswide to survey 1,500 senior business decision‐makers within businesses / retailers that trade and / or sell goods cross-border across the U.S., UK, India and Australia. The data was collected between January 13 – 20, 2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles. About AvalaraAvalara is the agentic tax and compliance leader. For more than two decades, Avalara has developed one of the most expansive libraries of tax content and integrations in the industry, supporting over 200,000 direct and indirect customers across more than 75 countries. The company's purpose-built AI agents automate end-to-end compliance processes with greater precision, from tax calculations and return filings to exemption certificate management and beyond. For more information, visit Avalara.com. 1 'Strongly agree' and 'Somewhat agree' responses combined 2 'Much more complex' and 'Slightly more complex' responses combined 3 Inverse of 'Not using AI for this purpose' Logo - https://mma.prnasia.com/media2/2407832/Avalara_Logo.jpg?p=medium600
2026-02-16 22:00:00