HMRC Awards Quantexa 10-Year £175m AI Contract to Boost Fraud Detection

HM Revenue and Customs announced a 10-year, £175 million contract with British technology firm Quantexa to supply AI-powered systems that improve its operations.

Quantexa stated its platforms will integrate HMRC data with external sources to speed up detection of fraud and correction of unintentional errors. The technology will also support customer service staff and uncover hidden networks of companies and individuals involved in fraudulent activity.

Government figures show public dissatisfaction with HMRC performance has grown in recent years. A Freedom of Information request by the Contentious Tax Group revealed more than 93,000 complaints about the department in 2024-25, up from just over 70,000 in 2020-21. Slow response times ranked among the top issues.

Quantexa emphasized that AI-generated decisions on taxpayers will require human review. Chief Executive Vishal Marria told the BBC the technology aims to "support human decision-making, not replace it".

"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 said.

Marria added that HMRC data will stay secure, with staff handling government work kept separate from the rest of the business. "We never take HMRC data away from the HMRC environment," he said.

The firm also plans to help track legitimate payments sent to HMRC under incorrect reference numbers.

London-based Quantexa, valued at $2.6 billion (£1.9 billion), counts HSBC and Vodafone among its corporate clients. Selecting a British company aligns with government pushes for digital sovereignty.