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HMRC Picks Quantexa for £175 Million, 10-Year Data and AI Overhaul

The move underscores a push for sovereign, explainable AI in core public services.

Overview

  • The tax authority’s deal, announced Thursday, launches a decade-long program to replace legacy data silos with Quantexa’s decision platform.
  • Quantexa says the system will run inside HMRC’s secure environment with HMRC as data controller, and all outputs will be transparent and auditable.
  • The tools are designed to link billions of data points to flag likely fraud networks, sift whistleblower tips, and speed tasks such as matching payments sent with wrong references.
  • Officials present the award to a UK firm as a shift toward domestic tech for critical systems after concerns raised by contracts like the NHS data platform built by Palantir.
  • The program targets lost tax and service delays after 93,000 complaints in 2024/25, though gains in accuracy and fewer false positives will only be proven over a multi-year rollout.