The UK's tax authority is turning to AI to help identify fraud

HM Revenue & Customs (HMRC), the UK's tax authority, has announced a 10-year deal with British tech firm Quantexa to use AI for detecting fraud and tax return errors. The BBC has reported that the multi-year agreement will cost the UK government £175 million ($234 million). Under the partnership, Quantexa will combine data that the HMRC has collected with other sources to help it spot incidents of fraud, as well as to help it fix unintentional errors. It will also assist HMRC with its customer service needs and identify companies or individuals trying to hide fraudulent activities. In addition, the HMRC will use its technology to track down legitimate payments made by taxpayers under the wrong reference number.

Quantexa, founded in London back in 2016, develops AI apps and tools for data analytics and decision-making. Aside from the UK tax authority, it's also working with the ...