HMRC Signs £175m AI Deal with Quantexa
HM Revenue and Customs (HMRC) has entered into a 10-year agreement valued at £175 million with the British technology company Quantexa to deploy AI-powered solutions aimed at enhancing its operational efficiency.
Quantexa’s technology will integrate data collected by HMRC with external datasets to assist the tax authority in identifying fraudulent activities and rectifying inadvertent errors more rapidly.
The AI system’s responsibilities will include supporting HMRC’s customer service personnel and uncovering concealed networks of companies and individuals engaged in fraudulent conduct.
Public dissatisfaction with HMRC’s performance has increased in recent years, as indicated by government statistics.
A Freedom of Information request submitted by the Contentious Tax Group revealed that over 93,000 complaints were lodged against HMRC in the 2024-2025 period. This figure represents a rise from just over 70,000 complaints recorded in 2020-2021, with delayed response times cited as a primary concern.
Quantexa has emphasized that AI-generated decisions regarding taxpayers will continue to require human verification.
"The new technology was designed to 'support human decision-making, not replace it'," Quantexa chief executive Vishal Marria told the BBC.
"In government environments, AI cannot operate as a black box. Decisions need to be transparent, auditable, and explainable, particularly in areas affecting citizens directly," he added.
Marria also assured that HMRC data security will be maintained, with personnel working on government projects remaining segregated from the rest of Quantexa’s operations.
"We never take HMRC data away from the HMRC environment," he stated.
Additionally, Quantexa’s technology will assist in identifying legitimate payments made to HMRC that have been submitted under incorrect reference numbers.
The UK-based company is currently valued at $2.6 billion (£1.9 billion) and counts major corporations such as HSBC and Vodafone among its clients.
The selection of a British firm aligns with the government’s initiative to promote "digital sovereignty."
There are ongoing concerns regarding the UK’s reliance on platforms and services provided by large US-based technology companies, exemplified by the controversial £330 million contract awarded to the AI data processing firm Palantir to develop a platform for the National Health Service (NHS).
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