The UK government has awarded a 10-year contract worth approximately £175 million to British technology company Quantexa as part of an effort to modernise HM Revenue and Customs (HMRC) using artificial intelligence.
Under the agreement, Quantexa will provide AI-powered data analytics tools designed to help HMRC identify fraudulent activity, reduce administrative errors, and improve operational efficiency. The technology will combine information held by HMRC with relevant external data sources to uncover suspicious patterns and hidden connections between companies and individuals.
In addition to fraud detection, the platform is expected to assist customer service teams and help resolve issues such as payments submitted with incorrect reference numbers, making it easier to match transactions accurately.
Quantexa has emphasised that AI will be used to support officials rather than replace them. Decisions affecting taxpayers will continue to involve human oversight, with a focus on transparency, accountability, and explainability.
The announcement comes as HMRC faces ongoing scrutiny over customer service performance and complaint levels, with many taxpayers reporting delays in responses and other service-related issues in recent years.
The partnership also aligns with the UK’s broader strategy of strengthening domestic digital capabilities by working with home-grown technology providers. Quantexa, a UK-based company serving major financial institutions and enterprises, has become a significant player in AI-driven data intelligence and fraud prevention.
As governments increasingly adopt AI technologies, the success of initiatives like this will depend on balancing innovation with responsible governance, data security, and public trust.
This article is based on publicly reported information and has been independently written. For additional context, readers can refer to the original reporting by BBC News.
Source: https://www.bbc.co.uk/news/articles/c7v9ld262n4o
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