HMRC signs £175m AI deal with Quantexa to fight fraud
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- HMRC signs a 10‑year, £175 million contract with British AI firm Quantexa to deploy AI for fraud detection and tax‑return error correction.
- Quantexa says its platform will merge HMRC’s internal data with external sources to uncover hidden networks of companies and individuals masking fraudulent activity.
- HMRC logged more than 93,000 public complaints in 2024‑25, up from about 70,000 in 2020‑21, with many citing slow response times.
- Quantexa CEO Vishal Marria told the BBC the AI system is designed to support human decision‑making and will remain transparent, auditable and explainable.
- Palantir is mentioned as a US tech firm the government aims to reduce reliance on, highlighting a digital‑sovereignty push behind the Quantexa deal.
Why it matters: HMRC gains a powerful tool to detect hidden fraud and correct errors faster, while taxpayers benefit from quicker resolutions; the deal also signals a strategic shift toward UK‑controlled tech, reducing dependence on US providers.
