HMRC has admitted to using AI to spy on Brits’ social media posts in certain instances as a security expert warned of a “Horizon Post Office-type scandal”. It examines posts on the internet – as well as financial records, spending habits, and tax returns – to look for evidence of cheating. Showing off large purchases or an expensive holiday, for example, could be a red flag if the person appears to be spending beyond their means.
This has raised concerns over errors that could arise when important tax decisions, based on personal data, are made without human judgement. Sir John Hayes, a former security minister and chairman of the Common Sense Group of Tory MPs, warned of potentially dire consequences comparable to the Post Office scandal.
He said: “Where confidential or sensitive material is concerned, people need to be assured that human beings with experience, common sense and judgement are making decisions.
“Automated processes remove human interactions. I would be very concerned that we will end up with a Horizon Post Office-type scandal. The idea that a machine must always be right is what led to the Post Office scandal. I am a huge AI sceptic.”
HMRC stressed that AI is only used for social media monitoring in criminal investigations, and there are “robust safeguards in place”. This has reportedly been the case for many years, and all uses of the technology are within the law.
These tools are used alongside Connect – a separate IT system for examining financial data for routine tax investigations.
It uses billions of data points, including information on possible tax evasion – to carry out investigations without humans, thereby reducing costs.
A HMRC spokesman said: “Use of AI for social media monitoring is restricted to criminal investigations and subject to legal oversight.
“AI supports our processes but – like all effective use of this new technology – it has robust safeguards in place and does not replace human decision-making.
“Greater use of AI will enable our staff to spend less time on admin and more time helping taxpayers, as well as better target fraud and evasion to bring in more money for public services.”
