Coventry council to use Palantir AI in social work, Send and children’s services.

Exclusive: Workers claim £500,000 contract with US software firm that supplies Israeli army raises’serious ethical problems’.

Workers in the public sector have expressed “deep concern” after Coventry City Council secured a £500,000-per-year artificial intelligence contract with Palantir, a US data technology company.

The agreement is the first of its sort between a UK local government and the Denver-based corporation, which provides technology to Israel’s Defence Forces (IDF) and aids Donald Trump’s mass deportation efforts.

The contract builds on a trial program in the council’s children’s services department, which included employing AI for case-note transcription and summarising social workers’ records. The council intends to expand the Palantir system to include protocols for giving support to youngsters with special educational needs.

Julie Nugent, the council’s chief executive, stated that the organisation sought to “improve internal data integration and service delivery” as well as “explore the transformative opportunities of artificial intelligence”. Palantir already has several public-sector contracts in the UK, including supplying AI to help combat organised crime in Leicestershire and developing the new NHS federated data platform.

In February, Keir Starmer visited the company’s Washington office with Alex Karp, its CEO and co-founder. Palantir was also co-founded by Peter Thiel, the PayPal billionaire who contributed to Trump’s 2016 presidential campaign.

Trade unions representing teachers and other council employees have warned the arrangement raises “serious ethical questions,” while independent councillor Grace Lewis has called on the council to cancel the contract immediately “and ensure the £500,000 is spent right here in our community.”

“It is 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,” Lewis told the BBC.

Coventry has recently begun utilising Palantir’s AI to screen applications for home support subsidies. In a June meeting of councillors, a senior official stated, “There are very few areas that would not benefit from artificial intelligence.” A councillor at the meeting responded: “Sounds a bit like Big Brother to me.”

In a letter to Nugent, Nicky Downes, joint secretary of the National Education Union’s Coventry branch, highlighted Palantir’s use of AI in surveillance and weapons systems, as well as her concerns about the company’s collection and storage of data on citizens, particularly in relation to predictive policing.

“There are some serious ethical questions regarding the business practices of Palantir Foundry, which is a subsidiary of Palantir,” Downes told reporters.

“There are also concerns about its usage and supply of personal data. We would challenge the procurement process, notably in terms of ethical considerations and risk evaluations, that led to the decision to spend £500,000 on an AI package from Palantir Foundry.

Nugent responded: “We have hired Palantir for a 12-month period to investigate the revolutionary potential of artificial intelligence by conducting proof-of-concept trials in a number of our important areas.

This will help us construct our business case for future investments as well as our overall AI strategy.

We recognise how important the ethical issues of AI procurement are. Please be assured that the council conducted a thorough and vigorous due diligence procedure in accordance with our procurement policies.

A Palantir spokeswoman stated, “We are excited to assist Coventry City Council in leveraging AI to improve the services that they provide to the public.”

The technology has enormous possibilities, such as allowing social workers and special education experts to spend less time on paperwork and more time directly supporting children who are vulnerable or special needs.

The early indicators are quite positive, with the potential for a large decrease in administrative burden.”

They stated that Palantir was non-partisan and had worked with a variety of US government administrations since its collaboration with the Department of Homeland Security in 2010.

The council’s representative stated that it was looking into how AI may assist improve and streamline services. “We are investigating several AI solutions and technology partners, including Palantir, to support our AI aspirations.

As we continue to evaluate the benefits of AI for future investment, ensuring strong data protection and control requirements will remain our top focus.”

It stated that the contract was awarded in accordance with routine procurement procedures and met its “rigorous security and compliance requirements”.

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