The first UK council to appoint the US technology company Palantir to deploy artificial intelligence (AI) into its systems is reviewing the contract after protests by workers and councillors over its links to the Israel Defense Forces (IDF).
The review of the £500,000-a-year deal with the company co-founded by the Donald Trump donor Peter Thiel was announced by Coventry city council’s Labour leadership on Tuesday after the Guardian first reported concerns. Palantir is also involved in the US government’s immigration crackdown and helps to manage data in the NHS.
Trade unions representing teachers and other workers protested against the contract outside a full council meeting on Tuesday, when they were told by deputy council leader Abdul Khan: “We are reviewing the Palantir contract … and I personally agree with the sentiments regarding the divestment of all funds which are being used in the genocide all across the world, particularly at the moment in Gaza. So, whenever this is brought before the council, I will be supporting your concerns and agreeing with what you’ve said.”
The contract with the Colorado-based company started in February and followed a pilot scheme in the council’s children’s services department, including using AI for case-note transcription and to summarise social workers’ records. The council had said it was planning to extend the system and “explore the transformative opportunities of artificial intelligence”.
The review was confirmed by the cabinet member for finance, Richard Brown. But he insisted that, with the council losing £1.6bn in spending power since 2010 and many local authorities facing effective bankruptcies – known as section 114 – “we simply cannot afford to stand still and do nothing”.
“For any council to fail to find smarter, better and cheaper ways to offer our 700-plus services is a one-way street to section 114 land,” he said. “AI is a valuable tool that has the potential to make the right changes.”
Unions are concerned that AI systems could replace human workers. Coventry recently started using Palantir’s AI to screen applications for household support funds. Asked if there would be job losses from the Palantir contract, Brown said: “I can’t comment on that.”
Palantir said last week that the early signs from the contract showed “potential for a significant reduction in the admin burden”.
Councillor Grace Lewis had complained that it was “indefensible that the council entered into a contract with Palantir, a company infamous for its role in providing weapons and surveillance to the IDF and its role in NHS privatisation, at a time when the council has made cuts to the public and voluntary sector”.
At a public forum in May, Palantir’s chief executive, Alex Karp, was challenged over the company’s contracts with Israel’s military and told: “Your technology kills Palestinians.” He replied: “That’s true, mostly terrorists.”
Lewis welcomed the commitment to review the Palantir contract, but said it was disappointing that Brown was “unable to recognise the harmful nature of the contract and also has failed to rule out job losses associated if this contract was to continue”.
She added: “This review must be urgent, transparent and include campaigners – with clear outcomes within four weeks.”
Palantir was approached for comment.
