Her Majesty's Revenue and Customs (HMRC) has awarded a £175 million contract to British technology firm Quantexa to deploy artificial intelligence systems for detecting fraud and identifying errors in tax returns.

Quantexa, which operates a financial data platform, secured the substantial government contract as part of HMRC's efforts to modernize its fraud detection capabilities using advanced technology.

The AI system will be designed to analyze tax returns and financial data to identify patterns that may indicate fraudulent activity or computational errors that could result in lost revenue for the government.

The contract represents a significant investment by the UK government in artificial intelligence technology for public sector applications, particularly in the critical area of tax collection and compliance.

Quantexa's selection for this high-value government contract highlights the growing role of British technology companies in providing AI solutions for public sector challenges, as authorities seek to leverage machine learning capabilities to improve efficiency and accuracy in government operations.