HMRC Overhauls Taxpayer Services With AI Platform
HM Revenue & Customs has signed a multi-year contract with Capgemini to rebuild its customer service operations around an AI-powered platform. The project consolidates decades of legacy systems into a single cloud-based service designed to handle millions of taxpayer interactions annually.
Capgemini will work alongside NiCE, which supplies the customer experience AI platform, and Route 101, a delivery specialist. The three companies will handle system design, implementation, workflow integration, and ongoing support.
What Changes for Taxpayers
The new platform, NiCE CXone, runs on a UK sovereign cloud to meet data security requirements. It combines self-service capabilities with AI-driven routing to reduce wait times and simplify common tasks.
Taxpayers will be able to switch between channels-phone, online, chat-without repeating information. The system provides personalized guidance tailored to individual circumstances, whether someone is filing a return or handling a business query.
HMRC will continue offering phone and in-person support for people who cannot use digital channels, those in vulnerable situations, or those with complex cases.
What Changes for Staff
Customer service advisers get real-time information and AI-assisted guidance during calls. The system suggests relevant answers and flags potential errors, allowing advisers to resolve queries faster.
Rob Walker, Managing Director at Capgemini UK, said the contract reflects the firm's ability to deliver large-scale transformation programs. "We are building a value partnership that goes beyond technology delivery-one focused on long-term outcomes and continuous improvement," he said.
Technical Details
The platform includes conversational AI from NiCE Cognigy, which handles routine inquiries without human intervention. Route 101 provides telephony infrastructure through Gamma, its communications provider, designed to handle traffic spikes.
The sovereign cloud deployment ensures HMRC data stays within UK jurisdiction and meets government security standards.
The Bigger Picture
HMRC processes tax returns and benefit claims for millions of individuals and businesses. The current infrastructure relies on systems built over decades, which slows updates and makes it difficult to add new services.
This contract reflects a broader shift across UK government to modernize customer-facing operations. For AI for Customer Support professionals, the project demonstrates how large organizations are moving toward AI Agents & Automation to handle routine work while keeping humans in the loop for complex cases.
Fiona Virtue, Head of Public Sector at Route 101, said the program combines technology with human judgment. "By combining technology with human insight, we're helping HMRC create more seamless, accessible experiences that support people and businesses," she said.
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