UK Government Says AI Tool Helped to Recover £480m Lost to Fraud

_{Photo credit: Sven Hansche / Shutterstock.com}

According to a BBC report, a new AI tool has enabled the UK government to reclaim around £480m ($643m) in funds previously lost to fraud, marking the largest annual recovery on record.

According to the Cabinet Office, the new AI tool—called the Fraud Risk Assessment Accelerator—helped identify fraudulent COVID-19 support claims, unlawful council tax rebates, and illegal subletting of social housing. 

Of the £480m ($643m) recouped since April 2024, around £186m ($249m) is related to pandemic-era fraud. Officials say the savings will be redirected to the recruitment of nurses, teachers, and police officers.

AI was used in conjunction with cross-referencing data across government departments. According to the Cabinet Office, the AI tool scans policies for weaknesses before they can be exploited and now allows the government to make fraud-proof policies before implementation. 

Cabinet Office minister Josh Simons said that “cutting-edge AI and data tools” would ensure taxpayer money is not lost to “scammers and swindlers.”

The government also plans to license the tool internationally, with the US, Canada, Australia, and New Zealand among the first countries expected to adopt it.

However, the move may intensify criticism from civil liberties groups who have previously raised concerns over bias in government AI systems. A separate AI welfare fraud detection tool used by the Department for Work and Pensions was found to produce “statistically significant outcome disparities” across factors such as age and nationality.

Despite the record figure, the recovered COVID-19-related funds are small compared to the estimated £7bn ($9.4bn) that Labour claimed was lost to fraud during the pandemic.