Public sector employees are voicing “significant concerns” following Coventry City Council’s agreement with the US data technology firm Palantir, valued at £500,000 annually.

This contract marks the first collaboration between a UK local authority and a Denver-based organization, which also provides technology to the Israeli Defence Force (IDF) and aids Donald Trump’s initiatives against U.S. immigration policies.

The agreement emerges after the Council’s Children’s Services Division initiated a pilot program utilizing AI for transcribing case notes and summarizing records of social workers. The Council intends to broaden the Palantir system to assist children with special educational needs.

Julie Nugent, the Council’s chief executive, stated the objective is to “enhance internal data integration and service delivery” while “exploring transformative opportunities in artificial intelligence.”

Palantir has secured numerous public sector contracts in the UK, including the deployment of AI to combat organized crime in Leicestershire and assisting in developing a new NHS federated data platform. Keir Starmer visited the company’s Washington office in February, accompanied by CEO and co-founder Alex Karp. Palantir was co-founded by PayPal billionaire Peter Thiel, who supported Trump’s 2016 election campaign.

Unions that represent teachers and other council staff have voiced that this deal raises “serious ethical questions,” with Independent Councillor Grace Lewis urging the council to terminate the contract immediately to “ensure that £500,000 benefits our community.”

“We cannot justify the Council signing a contract with a company that has a well-documented history in supplying arms and surveillance to the IDF and its involvement in NHS privatization while the Council reduces funding for public and voluntary sectors,” Lewis commented.

Coventry has recently started evaluating applications for household support funds through Palantir’s AI. During a councillor’s meeting, a senior official remarked, “To me, it sounds like my brother.”

In correspondence to Nugent, Nicky Downes, co-secretary of the Coventry branch of the National Education Union, pointed out the troubling implications of AI in Palantir’s surveillance and military systems, highlighting concerns about data collection and storage on citizens, especially related to predictive policing.

“There are considerable ethical concerns surrounding Palantir Foundry’s business practices, which is a subsidiary of Palantir,” Downes stated. “Questions also arise regarding the acquisition and utilization of personal data, particularly in relation to ethical considerations in the procurement process and the accompanying risk assessment.

Nugent responded, “We have engaged Palantir for a year to investigate potential transformative solutions in artificial intelligence by applying concepts across numerous essential areas. This aims to establish a business case for further investments and a comprehensive strategy for AI. We acknowledge that the ethical implications of AI procurement hold paramount importance.

A representative from Palantir remarked, “We are enthusiastic about assisting Coventry City Council in enhancing the public services offered by AI. Technology opens up significant opportunities, such as decreasing the time social workers and experts in special education spend on administrative tasks, allowing them to focus on directly aiding vulnerable children.”

They also stated that Palantir is nonpartisan and has worked with various US governmental administrations since its collaboration with the Department of Homeland Security in 2010.

A council spokesperson confirmed that they are exploring ways AI can enhance and streamline services. “In this initiative, we are assessing a variety of AI solutions and technology partners, including Palantir, to support our AI objectives. Our top priority remains to evaluate AI’s value for future investments while maintaining rigorous data protection and governance standards.”

The contract was awarded following standard procurement protocols and met all “strict security and compliance requirements.”