Coventry City Council has signed a £500,000-a-year artificial intelligence contract with US data technology company Palantir, sparking deep concern among public sector workers. The deal, the first of its kind between a UK local authority and the Denver-based firm, follows a pilot in children's services where 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.
Palantir supplies technology to the Israel Defense Forces (IDF) and has been involved in Donald Trump's mass deportation efforts. The company also has UK contracts with Leicestershire police to tackle organised crime and with the NHS to build a federated data platform. Prime Minister Keir Starmer visited Palantir's Washington office in February, meeting CEO Alex Karp.
Trade unions and independent councillor Grace Lewis have called for the contract to be cancelled. Lewis said it was 'indefensible' to spend £500,000 on Palantir while the council cuts public and voluntary services. The National Education Union's Nicky Downes raised 'serious ethical questions' about Palantir's use in surveillance and weapons systems, and its data collection practices.
Council chief executive Julie Nugent defended the 12-month contract, stating it aims to 'explore the transformative opportunities of artificial intelligence' and that due diligence was undertaken. A Palantir spokesperson said the technology could reduce admin burdens for social workers and special needs professionals, enabling more direct support for vulnerable children.
