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World of Software > News > Staff concerned over local authority’s AI contract with Palantir – UKTN
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Staff concerned over local authority’s AI contract with Palantir – UKTN

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Last updated: 2025/09/01 at 5:04 AM
News Room Published 1 September 2025
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Staff at Coventry City Council are concerned over a major AI contract handed by the local authority to controversial US tech giant Palantir, according to reporting from The Guardian.

The American tech group co-founded by Trump-backer Peter Thiel provides software for numerous defence and governmental partners, however, the deal with Coventry, worth £500,000 a year, is the first of its kind with a local authority in Britain.

The deal, according to Coventry City Council, is to improve its data integration and explore how AI can be incorporated into its services.

The contract has proved controversial among staff at the council, with The Guardian reporting that independent councillor Grace Lewis called for it to be immediately cancelled.

Palantir’s software has been used by several controversial customers, most notably the Israeli Defence Force (IDF).

“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,” said Lewis.

Palantir has worked extensively with the UK public sector in areas ranging from crime tackling to NHS medical data organisation.

A Palantir spokesperson said: “We are excited to help Coventry City Council harness AI to improve the services that they provide to the public.

“The technology offers huge potential, such as enabling social workers and special educational needs professionals to spend less time on paperwork and more time directly supporting children who are vulnerable or have special needs. The early signs are extremely promising, showing the potential for a significant reduction in the admin burden.”

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