AI and machine learning have rapidly evolved from emerging technologies to mainstream business investments. In recent years, software companies have increasingly integrated AI and machine learning capabilities into their products, services, and processes to drive innovation, improve efficiency, and to stay competitive within their industry.
Behind this growth sits significant upfront investment, not just in cost, but in time and resource. For many companies, this innovation activity creates an opportunity to claim R&D tax relief, provided their AI projects are qualifying. For AI to be eligible as R&D for tax credits, the project must still meet the same R&D tax credit qualifying criteria as any other development project.
Whilst the assumption is that AI projects are considered clear-cut in terms of eligibility, AI is often one of the more complex industries to claim R&D tax credits within. Often questions arise in the form of where the IP sits and IP ownership and surrounding if there is genuine uncertainty for a company undertaking AI assisted research. This is why enlisting expert advice is essential, to ensure that the project is carefully evaluated as to its suitability for R&D tax credits.
.jpg)
AI projects are assessed under the same core R&D definition and criteria as any other sector.
To qualify, a project must:
• Seek to achieve an advance in science and/or technology
• Involve the resolution of technological uncertainty
• Require work that could not be readily deduced by a competent professional in the field
Put simply: Your developers must be trying to achieve something they didn’t know how to do at the outset, and which couldn’t be readily worked out by a competent professional using publicly available information.
Project objective and background:
An extended reality (XR) company’s R&D efforts focused on pioneering an interactive and monetisable audience engagement platform for live music performances, integrating immersive mixed reality, real-time streaming and gaming mechanics. The project faced significant technological challenges in synchronising cross-platform streaming for AR/VR environments, developing an advanced AI-enabled audio analysis system, and creating a scalable, dynamic content delivery pipeline. Existing solutions lacked the real-time synchronisation, compatibility, and interactive capabilities required for seamless artist-audience engagement. The development team tackled uncertainties related to machine learning scalability, secure data retrieval from Mixpanel, and latency mitigation, requiring iterative experimentation and bespoke software development. Through resolving these challenges, the project successfully delivered a production-grade cloud backend, a Twitch Extension with latency-mitigating UI, and seamless integrations within the Unity game engine, establishing a new technological benchmark in audience engagement for the music industry.
RCK Advisor and NED at Open Banking Ltd, MONY Group plc, and Social Finance, Inc, previously led digital product transformations at Financial Times, Rightmove, Tech Nation and Simply Business.
MB Christie is a product and operations leader with over 25 years’ experience as a Product and Operations Leader. She has held senior leadership roles at organisations including the Financial Times, Rightmove, Simply Business, TUI Group, and Tech Nation. MB's executive experience includes serving as Chief Product Officer at Simply Business, Chief Operating Officer at Tech Nation, Digital Product Director at TUI Group, and Product Director at the Financial Times, where she played a key role in leading the organisation’s transition from print to digital. MB currently serves as a Non-Executive Director at MONY Group plc, Finsbury Growth & Income Trust plc, Social Finance Inc, and Open Banking, bringing deep expertise in digital strategy, governance, and scaling innovation. A former journalist, MB began her career as a foreign correspondent for several US newspapers and was named one of Cranfield School of Management’s Top 100 Women to Watch in 2018. MB joined RCK as an advisor due to her passion for innovation and her commitment to helping product leaders strengthen their business cases through R&D tax credits.
.png)
Partner (External)
Paul is a R&D software consultant and industry commentator who has joined RCK as a contractor in a Partner position. At RCK, Paul focuses on R&D tax credit software consulting while also representing RCK Partners more broadly across the wider market. RCK operates a layered advisory model, to which Paul contributes by adding in-depth sector expertise as RCK expands its senior capabilities to meet growing client demand across innovation-led and technology-driven sectors. In addition, Paul is the founder of R&D Consulting Ltd and has worked in R&D tax relief, I.T. and digital forensics over the last two decades, he is widely recognised for his deep technical knowledge and principled approach to advising on complex claims. Outside of RCK, Paul undertakes investigative and reporting work. In recognition of his impact, Paul has received the Outstanding Contribution to Tax by an Individual award at the 2025 Tolley’s Taxation Awards. He is widely regarded as a central in driving higher standards within the industry.
.webp)
Partner
Alex joined RCK as our first ever graduate hire back in 2021 and has progressed to the role of a commercial Partner. With nearly five years of experience within the R&D tax credits sector, Alex works with a diverse range of clients from early-stage startups to established enterprises, and has a focus on the AI sector. His client-centred approach to the role has allowed Alex to form strong networks with both clients and professional service providers.
Senior Account Executive
.jpg)