TLDR: HM Revenue and Customs (HMRC) significantly expanded its use of generative AI tools in the 2024/25 fiscal year, establishing a secure ‘landing zone’ to safely integrate the technology. The department’s annual report details various applications, including AI-powered call summarization for helplines, online chatbot advice, modernized recruitment processes with tools like ‘Skill Scribe’, and advanced analytics for compliance and fraud detection. HMRC emphasizes a focus on internal, safe uses to enhance customer experience and operational efficiency, adhering to strict ethical and data protection standards.
HM Revenue and Customs (HMRC) has markedly increased its adoption of generative artificial intelligence (AI) tools during the 2024/25 fiscal year, as detailed in its latest annual report. A key development highlighted is the establishment of a dedicated ‘landing zone’ – a secure and flexible environment designed to facilitate the safe and effective exploitation of AI technologies, both internally and for customer-facing services. This strategic move underscores HMRC’s commitment to leveraging advanced technology to enhance its operations and service delivery.
The department’s report reveals a diverse array of generative AI applications. One significant use case involves exploring ‘call summarisation’ to support telephony advisers, aiming to reduce the time spent on customer call wrap-up through real-time summaries and improve call categorization. This initiative seeks to boost efficiency and streamline customer interactions.
Beyond customer service, HMRC is modernizing its recruitment processes with innovative AI products. A notable tool, ‘Skill Scribe’, has been introduced to simplify and improve the vacancy-holder experience, making it easier for hiring managers to write job advertisements, formulate interview questions, and provide outreach support. Additionally, the department has developed a ‘regional insights tool’ that offers real-time location information to assist with labor market analysis.
In a broader governmental effort, HMRC participated in a cross-government AI chatbot pilot, designed to make accessing guidance on GOV.UK more straightforward for the public. The tax authority is also employing advanced AI analytics tools to support enhanced compliance targeting, debt prediction, and fraud detection, demonstrating its commitment to more effective revenue collection and combating illicit activities.
HMRC acknowledges its long-standing use of ‘traditional’ AI for decades, defining AI as ‘the use of technology to create systems capable of performing tasks commonly thought to require human intelligence.’ The recent focus on generative AI, a subset capable of generating new information like text or images, is concentrated on ‘safer, internal uses of AI that drive better customer experience, internal productivity and improve our operations.’ The department’s approach ensures that ‘where we use AI in a way that could impact customer outcomes, we always ensure that the result is explainable, that there’s a human in the loop, and that it complies with our data protection, security, and AI ethical standards.’ HMRC is also actively contributing to international discussions on AI, having pulled together examples of AI use from tax authorities globally, which contributed to the creation of a global ‘Trustworthy AI Framework’ set to be tested later in 2025.
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This strategic embrace of generative AI, underpinned by a robust ‘landing zone’ and a commitment to ethical deployment, positions HMRC at the forefront of public sector innovation, aiming to deliver more efficient and effective services for UK taxpayers.
