HMRC to use AI from British tech firm to spot fraud and tax return errors

"Quantexa says its systems will combine data collected by HMRC with external sources to help the tax office identify incidents of fraud and fix unintentional errors more quickly. Its tasks will include helping HMRC to assist customer service staff, as well as to identify hidden networks of companies and individuals masking fraudulent activity."

"Quantexa says automated decisions about tax payers made by AI will still need to be checked by people. Quantexa chief executive Vishal Marria told the BBC the new technology was designed 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."

"He also said HMRC data would remain secure, and staff working with the government department would remain separate from the rest of the business. "We never take HMRC data away from the HMRC environment," he added. The company also said it will help in tracking down legitimate payments made to HMRC made under the wrong reference number."

"The appointment of a British company is in line with the government's efforts to build what's known as "digital sovereignty". There are concerns about the UK's dependence on platforms and services provided by big tech companies based in the US, including the controversial 330m contract awarded to the AI data processing firm P"

HM Revenue and Customs has agreed a 10-year, £175m deal with Quantexa to deliver AI-powered technology aimed at improving tax administration performance. Quantexa’s systems will combine HMRC-collected data with external sources to identify fraud incidents and resolve unintentional errors more quickly. The technology will support customer service staff and help uncover hidden networks of companies and individuals involved in fraudulent activity. Automated AI decisions about taxpayers will require human checking. The approach is intended to keep AI decisions transparent, auditable, and explainable, especially where citizens are affected. Quantexa says HMRC data will remain secure within HMRC environments and staff will remain separate from the rest of the business. The system will also help track legitimate payments made using incorrect reference numbers.

Read at www.bbc.com