Public sector workers have expressed “deep concerns” after Coventry City Council signed an artificial intelligence contract with US data technology company Palantir, £500,000 a year.
The deal is the first between a UK local government and a Denver-based company, providing technology to the Israeli Defence Force (IDF) and supporting Donald Trump's efforts to expel the U.S.
The agreement follows the Council's Children's Services Division pilot scheme, which uses AI for case note transcription and summarises social worker records. The Council plans to extend the Palantir system into a process to provide support to children with special educational needs.
Council chief executive Julie Nugent said the aim is to “improve internal data integration and service delivery” and “exploring transformative opportunities for artificial intelligence.”
Palantir already has many public sector contracts in the UK. It provides AI to tackle organized crime in Leicestershire and helps build a new NHS federated data platform. Keir Starmer toured the company's Washington office in February with CEO and co-founder Alex Karp. Palantia was also co-founded by paypal billionaire Peter Thiel, who funded Trump's 2016 election Kamapain.
Unions representing teachers and other council workers have said the deal will raise “serious ethical questions,” with Independent Councillor Grace Lewis calling the council to cancel the contract immediately “ensure that £500,000 is spent in our community.”
“We cannot defend the Council signed contracts with companies that have notoriously known their role in providing arms and surveillance to the IDF and its role in privatizing the NHS at a time when the Council cut its public and voluntary sectors,” Lewis said.
Coventry recently began screening applications for household support funds using Palantir's AI. One senior official told a councillor's meeting in June. The councillor at the meeting replied, “To me, he sounds like my brother.”
In a letter to Nugent, Nicky Downes, co-secretary of the Coventry branch of the National Education Union, highlighted the use of AI in Palantir's surveillance and weapons systems, raising concerns about the collection and storage of data on citizens, particularly with regard to the provision of a predictive police system.
“There are some serious ethical questions about Palantir Foundry's business practices, which are a subsidiary of Palantir,” Downes said. “There are also questions related to the use and procurement of personal data, particularly the procurement process regarding ethical considerations and the associated risk assessment.
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Nugent replied. “We have appointed Palantir for 12 months to explore transformational opportunities in artificial intelligence by implementing concepts in many key areas. This will build a business case for further future investments and a holistic approach to AI. We understand that the ethical impact of AI procurement is the greatest importance.
A spokesman for Palantir said: “We are excited to help Coventry City Council improve the services AI offers to the public. Technology offers great possibilities, such as reducing the time spent by social workers and special education needs experts on paperwork and helping them directly support vulnerable children.
They said Palantia was nonpartisan and since working with the Department of Homeland Security in 2010, he had been working with many US government administrations.
A council spokesperson said they are exploring how AI can improve services and make them more efficient. “As part of this initiative, we are evaluating a range of AI solutions and technology partners, including Palantir, to support our AI goals. Continuing to assess the value of AI for future investments and maintaining robust data protection and governance standards is our number one priority.”
The contract was awarded in accordance with standard procurement procedures and said it met “stricken security and compliance requirements.”
