Coventry Council faces backlash over £500k Palantir AI contract

Employees and unions express their concerns over ethical implications of partnering with Palantir

Coventry City Council has signed a £500,000 contract with US technology company Palantir to explore the use of AI in social work and children's services, prompting criticism from public sector workers and trade unions who say the deal raises "ethical questions."

This marks the first known deal between a UK local authority and the Denver-based company, which is a major supplier to the Israel Defense Forces (IDF) as well as US Immigration and Customs Enforcement (ICE).

Palantir has been known for supporting the CIA's intelligence operations in Afghanistan and Iraq and faced criticism from civil rights groups in the US for providing its software to the ICE to track down suspected illegal immigrants.

The contract between Coventry Council and Palantir builds on a pilot initiative within the council's children's services department, where Palantir's AI has been used to transcribe case notes and summarise social workers' records.

Looking ahead, the council plans to expand the technology's role to streamline processes related to support for children with special educational needs.

Julie Nugent, Coventry council's chief executive, defended the move, arguing that it aims to "improve internal data integration and service delivery" and to "explore the transformative opportunities of artificial intelligence".

She said the Palantir contract is initially a 12-month engagement designed as a proof of concept to build a future AI investment case.

Palantir, co-founded by billionaire Peter Thiel, already holds several public sector contracts across the UK. These include aiding Leicestershire police with tackling organised crime and developing NHS England’s new federated data platform.

Despite these uses, the firm's involvement in supplying technology linked to military surveillance and weapons systems has raised alarm among local employees and trade unions representing council workers and teachers.

They have expressed "deep concern" about the ethical implications of partnering with Palantir.

Independent councillor Grace Lewis called for the immediate cancellation of the contract and redirection of the £500,000 investment into local community services.

While a senior official touted AI's broad benefits across council operations, one councillor likened the surveillance potential to "Big Brother."

Nicky Downes, joint secretary of the Coventry branch of the National Education Union, wrote to Nugent highlighting Palantir's involvement in predictive policing technologies abroad and raised concerns over data privacy and procurement ethics.

Downes questioned whether thorough ethical risk assessments accompanied the decision to invest heavily in Palantir's AI tools.

In response, Nugent reaffirmed that "a thorough and robust due diligence process" was carried out in line with procurement policies and stressed the council's commitment to addressing ethical considerations and data governance.

Palantir spokespersons said their technology can play a big role in reducing administrative burdens on social workers and special educational needs professionals.

They described early results as "extremely promising" and stressed the firm's non-partisan stance, highlighting longstanding engagement with multiple US government administrations since 2010.

A council spokesperson told The Guardian that the contract adhered to standard procedures and complied with "rigorous security and compliance requirements."

"As part of this initiative, we are evaluating a range of AI solutions and technology partners, including Palantir, to support our AI objectives … As we continue to assess the value of AI for future investment, maintaining robust data protection and governance standards will remain our top priority."