Coventry Council signs £500k AI contract with Palantir

Coventry City Council has entered into a £500,000 contract with US technology company Palantir to examine the application of artificial intelligence in children’s services and social work. The deal has drawn criticism from local employees and trade unions, who have raised concerns about the ethical implications of partnering with the Denver-based firm.

The agreement with Coventry Council builds on a pilot project within the council’s children’s services team, where Palantir’s artificial intelligence was deployed to transcribe case notes and summarise social worker records. The council intends to extend the use of this technology to processes relating to the provision of support for children with special educational needs.

Julie Nugent, chief executive of Coventry City Council, said the contract is intended to “improve internal data integration and service delivery” and to “explore the transformative opportunities of artificial intelligence.” She added that the 12-month contract was designed as a proof of concept to inform a potential longer-term investment in AI.

Palantir, co-founded by billionaire Peter Thiel, holds various public sector contracts in the UK, including with Leicestershire Police and NHS England. However, its involvement in military surveillance and targeting systems has sparked concern among public sector workers and educators in Coventry.

This is the first known contract between a UK local authority and Palantir, a company that supplies technology to the Israel Defence Forces and the United States Immigration and Customs Enforcement (ICE). Palantir has previously supported intelligence operations for the CIA in Afghanistan and Iraq and has faced opposition from civil rights groups in the United States for its role in ICE operations involving the tracking of suspected undocumented migrants.

A joint statement from city council unions said: “We would question the procurement process, particularly regarding the ethical considerations and accompanying risk assessments that led to the decision to spend £500,000 on an AI package from Palantir Foundry.”

Nicky Downes, joint secretary of the Coventry branch of the National Education Union, wrote to Nugent expressing concern about Palantir’s role in predictive policing abroad. Downes also questioned the adequacy of ethical assessments and the transparency of the procurement process.

Independent councillor Grace Lewis called for the contract to be cancelled and the money to be redirected towards local community services. Another councillor likened the AI system’s potential for surveillance to “Big Brother.”

In response, Nugent stated that “a thorough and robust due diligence process” was conducted, in line with existing procurement policies. She emphasised the council’s focus on ethical considerations and data governance.

A spokesperson for Palantir said its technology can help to reduce administrative workloads for professionals in social work and special needs support. They described the pilot’s early results as “extremely promising” and noted the company’s non-partisan engagement with various US administrations since 2010.

A council spokesperson told The Guardian that the contract followed “standard procurement and information governance procedures” and complied with “rigorous security and compliance requirements.” They added: “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.”

Image source: DeFacto, Wikimedia Commons