HM Revenue and Customs (HMRC) in the UK has entered into a ten-year agreement with Quantexa worth £175m ($233m) to modernise its data architecture, laying the groundwork for the “sovereign, governed” use of AI across core operations.

The move is intended to improve operational efficiency in key areas, strengthen safeguards around public finances and refine the service experience for taxpayers.

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Under the partnership, Quantexa will help HMRC overhaul its underlying data foundation to give the department a more connected and comprehensive view of its data, enabling it to better track performance, identify tax risks and tighten internal controls.

The move is also expected to support broader change programmes including efforts to narrow the tax gap and provide faster, more streamlined services.

Quantexa described its Decision Intelligence Platform as a way to bring together dispersed data into a single, governed environment that can support advanced analytics and enable controlled use of AI for both assisted and automated decisions.

The company said the programme is among the public sector’s largest Decision Intelligence deployments.

It is also structured to maintain data sovereignty, auditability and control – issues that have moved to the forefront as governments accelerate digital transformation.

Quantexa founder and CEO Vishal Marria said: “Governments around the world are facing a common challenge: how to turn complex, fragmented data into confident, timely decisions.

“By creating context from data and embedding trusted, governed AI, we are helping HMRC improve how public sector organisations make confident, informed decisions. This is a blueprint for how the UK Government deploys AI at scale.”

Earlier this year, HMRC set out plans to introduce multi-factor authentication (MFA) for agent accounts.

The department aims to roll out MFA by the end of June, although the exact timetable is yet to be confirmed.