HMRC Signs £175M AI Contract with Quantexa for Fraud Detection

HM Revenue and Customs, the United Kingdom's tax authority, has signed a 10-year contract worth 175 million pounds with London-based AI firm Quantexa to deploy artificial intelligence for detecting fraud and correcting errors in tax returns.

The agreement, announced this week, aims to modernize HMRC's data infrastructure by integrating Quantexa's Decision Intelligence Platform. The technology will combine HMRC's internal records with external data sources to identify fraudulent activities, such as hidden networks of companies and individuals evading taxes. It will also automate the detection of unintentional errors in filings, match legitimate payments submitted under incorrect reference numbers, and support customer service operations. Officials expect the system to narrow down cases for human review, improve efficiency, and help close the tax gap, which includes billions in unpaid taxes and evasion.

Quantexa, founded in 2016, emphasized that its AI is designed to augment rather than replace human judgment. "The new technology was made to support human decision-making, not replace it," said Vishal Marria, the company's founder and chief executive. He added, "In government...