TLDR: Coventry City Council has awarded a £500,000 artificial intelligence contract to US data technology firm Palantir, sparking significant backlash from public sector workers, trade unions, and local councillors. Critics cite ethical concerns over Palantir’s controversial history, including its work with the Israel Defense Forces and US Immigration and Customs Enforcement, and question the use of AI in sensitive areas like social work and children’s services.
Coventry City Council has entered into a 12-month, £500,000 contract with the US technology company Palantir to explore the application of artificial intelligence in its social work and children’s services departments. This agreement, described as a ‘proof of concept’ for future AI investment, has ignited a fierce debate and drawn widespread criticism from various stakeholders.
The contract builds upon a previous pilot initiative within the council’s children’s services, where Palantir’s AI was utilized for transcribing case notes and summarizing social workers’ records. The council intends to expand the technology’s role to streamline processes for supporting children with special educational needs.
However, the decision has been met with ‘deep concern’ from public sector workers and trade unions. Nicky Downes, joint secretary of the Coventry branch of the National Education Union, penned a letter to Chief Executive Julie Nugent, highlighting Palantir’s involvement in predictive policing technologies abroad and raising serious questions about data privacy and procurement ethics. Downes stated, ‘There are some serious ethical questions regarding the business practices of Palantir Foundry, which is a subsidiary of Palantir. There are also questions relating to its use of, and sourcing of, personal data.’
Independent councillor Grace Lewis has called for the immediate cancellation of the contract, advocating for the £500,000 investment to be redirected into local community services. Lewis condemned the deal as ‘indefensible’ given Palantir’s ‘infamous’ role in providing ‘weapons and surveillance to the IDF and its role in NHS privatisation,’ especially at a time when the council has implemented cuts to public and voluntary sectors.
Palantir, co-founded by billionaire Peter Thiel, has a contentious history. It is a significant supplier to the Israel Defense Forces (IDF) and US Immigration and Customs Enforcement (ICE), where its software has been used to track suspected undocumented immigrants. The company has also supported CIA intelligence operations in Afghanistan and Iraq, drawing criticism from civil rights groups.
Despite the controversy, Coventry council’s chief executive, Julie Nugent, defended the initiative, asserting that it aims to ‘improve internal data integration and service delivery’ and to ‘explore the transformative opportunities of artificial intelligence.’
This contract marks the first known deal of its kind between a UK local authority and Palantir, though the company already holds several public sector contracts across the UK, including assisting Leicestershire police with organized crime and developing NHS England’s new federated data platform.
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The debate also extends to the allocation of public funds, with some questioning whether £500,000 would be better invested in employing more human caseworkers and frontline staff rather than AI software that could potentially underperform or misfire, drawing parallels to past scandals like the Horizon Post Office scandal.
