The Insolvency Service has accelerated its adoption of artificial intelligence, moving from experimentation to live operational deployments across the organisation, according to its 2025-26 Annual Report and Accounts.
The report reveals the executive agency has rolled out Microsoft 365 Copilot Chat to staff, deployed AI-powered chatbots into production and begun using AI to automate elements of investigative casework, marking a significant shift from the previous year’s focus on governance and proof-of-concept activity.
The developments form part of a wider digital transformation programme designed to modernise the agency’s services and improve efficiency for both staff and customers.
In its annual report, the Insolvency Service said it had “accelerated adoption of artificial intelligence tools” during the year, with its AI roadmap progressing “from proof of concept to live services.”
Among the most significant deployments is the rollout of Microsoft 365 Copilot Chat across the organisation to improve employee productivity. The agency also completed a trial of Microsoft Copilot Premium, with the findings expected to inform future investment decisions.
The report highlights several AI applications that have already entered production. These include two operational AI chatbots and a Future Case Management Capability Training Agent, developed to support staff ahead of the rollout of the agency’s new INSSight case management system. The AI-powered training assistant is designed to help colleagues familiarise themselves with the new platform before it goes live.
If you liked this content…
HMRC Launches Largest Government Copilot Rollout
UK civil servants see time savings with Microsoft 365 Copilot
Housing workers confident on AI, but citizens remain unconvinced
Public sector AI ambitions outpace infrastructure readiness
Mayor backs £30m AI skills package to prepare London for changing jobs
The agency has also completed discovery work on an external AI-powered frequently asked questions chatbot for customers, with testing continuing during the reporting period.
Elsewhere, AI is being used to automate elements of the MG1 form completed by Investigation and Enforcement staff when recording police bail conditions, reducing manual administration within investigative workflows.
Broader digital transformation
The AI programme sits alongside broader digital transformation work across the organisation.
During the year, the Insolvency Service continued development of INSSight, its replacement for legacy case management systems, alongside work to modernise digital services and improve cyber resilience. The report also highlights investment in cloud technologies, data capabilities and modern software development practices as part of its wider transformation strategy.
The pace of AI deployment represents a progression from the agency’s previous annual report, which focused on establishing AI governance, developing an organisational roadmap and exploring potential use cases. The latest report demonstrates how several of those initiatives have transitioned into operational services.
The report suggests the organisation is taking a phased approach to AI adoption, combining internal productivity tools with targeted operational use cases before expanding into customer-facing services.
