Successful AI Pilot to Support Tax Arrears Collection

The Government has successfully completed a pilot artificial intelligence (AI) solution designed to support the tax administration work of the Central Arrears Unit (CAU).

As explained in Parliament (1st December 2025, afternoon Session) by the Minister for Justice Trade and Industry, Nigel Feetham KC MP, efforts to recruit additional staff in this area of the public sector have had limited success, despite the critical importance of the work undertaken by the CAU.

As further explained by Minister Feetham, in response, and recognising the need to address the challenge of tax arrears, a review of work methodologies within the Central Arrears Unit has been ongoing, with a focus on identifying alternative ways to improve productivity and efficiency. As part of this work, the Ministry has tested a pilot AI capability developed in-house called ‘Tax Agent’, specifically designed to assist with arrears management and case progression.

The pilot focused on supporting officers by automating manual and repetitive processes, enabling staff to concentrate on more complex and higher-value tasks. The pilot has now been completed and has demonstrated clear efficiency gains, highlighting how technology can be used to support frontline public servants where human resource constraints persist.

Commenting on the pilot, Minister Feetham said: “AI is intended to support public sector staff by providing them with additional tools. This pilot forms part of a broader approach to ensuring that this vital area of government administration responsible for tax collection benefits from meaningful efficiency gains.�?

The findings from the pilot will now inform the next phase of development and potential deployment within the Central Arrears Unit.