Coventry City Council has signed a £500,000-a-year artificial intelligence contract with US data technology company Palantir, prompting strong objections from public sector workers and local politicians. The deal is the first of its kind between a UK local authority and the Denver-based firm, which supplies technology to the Israel Defense Forces and assisted Donald Trump's mass deportation efforts.
The contract follows a pilot in the council's children's services department, where Palantir's AI was used for case-note transcription and summarising social workers' records. The council plans to extend the system to support children with special educational needs and has already begun using it to screen household support fund applications. Council chief executive Julie Nugent said the aim was to 'improve internal data integration and service delivery' and 'explore the transformative opportunities of artificial intelligence'.
Trade unions, including the National Education Union's Coventry branch, have raised 'serious ethical questions' about the contract. Independent councillor Grace Lewis called for immediate cancellation, stating: 'It is indefensible that the council entered into a contract with Palantir... at a time when the council has made cuts to the public and voluntary sector.' The union's joint secretary, Nicky Downes, highlighted concerns about Palantir's use of AI in surveillance and weapons systems, as well as its collection and storage of personal data.
In response, Nugent assured that the council had 'undertaken a thorough and robust due diligence process' and that the 12-month contract was intended to explore AI's potential. A Palantir spokesperson said the company was 'excited to help Coventry city council harness AI to improve the services that they provide to the public' and noted that early signs showed potential for reducing administrative burdens on social workers and SEN professionals.
Palantir already holds several UK public sector contracts, including work for Leicestershire Police and the NHS Federated Data Platform. The company, co-founded by Peter Thiel and led by Alex Karp, has been criticised for its ties to the IDF and its role in US immigration enforcement. Prime Minister Keir Starmer visited Palantir's Washington office in February alongside Karp.
