After signing a contract for a pilot period of one year, PublicTechnology understands technology platform will be used by department to create content related to internal communications and staff development

HM Revenue and Customs has signed a six-figure deal for the provision of a technology tool that uses artificial intelligence to create video content, PublicTechnology can reveal.

On 30 March the department entered into a one-year engagement with Synthesia – a London-based firm that offers an “AI video generator” aimed at the professional market.

Recently released commercial documents indicate that the contract – which was awarded via the G-Cloud 14 framework and is valued at £146,160 – is intended to support a “12-month pilot of an AI video generation tool for internal use by HR”.

PublicTechnology understands that the Synthesia platform will be used by HMRC to create content related to internal communications and staff training. Videos produced by the AI technology may be used either alongside or instead of those created using other methods.

Synthesia’s website says that the firm’s technology allows users to “create studio-quality videos with AI avatars and voiceovers in 160-plus languages [and] save up to 90% of time and cost on video production”.

If the year-long trial of AI video generation is judged to have been a success, HMRC will undertake a new assessment of potential tools and suppliers next year, before deciding whether and how to proceed with another procurement process and any potential longer-term rollout.

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An HMRC spokesperson said: “We are leading one of the biggest rollouts of internal AI tools in government – to support colleagues with day-to-day work, including search, summarisation and content production. This will empower colleagues to work more efficiently and effectively. We always follow government procurement rules when awarding contracts, ensuring value for money for taxpayers.”

Online procurement records indicate that the HMRC agreement is the sixth contract Synthesia has won with a public-sector organisation, having previously signed deals with Northumbria Healthcare NHS Foundation Trust, the Bank of England, government arm’s-length body Nuclear Restoration Services, and two engagements with Companies House.

The tech firm is often characterised as the UK’s largest generative AI firm. The company reportedly employs more than 500 staff and its most recently available accounts show that, during the 2024 calendar year, the business posted annual losses equating to £45m, with revenue of £46.6m.

In its most recent funding found, the company raised $200m in a deal with investor Google Ventures that valued the UK player at $4bn (£3bn).