‘INDEFENSIBLE’ – that is how a councillor has described Coventry City Council’s (CCC) decision to sign a one-year £500,000 artificial intelligence contract with a controversial US data technology company.
The council has appointed Palantir to provide its Artificial Intelligence (AI) services in a number of areas, including in processes for providing support to children with special educational needs, and to screen applications for household support funds.
The company has drawn criticism for its roles in Israel’s military operations, health data privatisation, and mass deportation efforts in the USA.
Coun Grace Lewis, who sits as an Independent at CCC since her resignation from Labour last month, said the decision meant Coventry residents would lose out on essential services while ‘Palantir profits and people in Palestine suffer’.
She added: “The decision is heinous, especially when the council has made cuts to public and voluntary sector services, including local charities and libraries.
“There was not only a lack of transparency in the leadership approving this contract, but the decision also undermines several key stances the council has taken calling for an immediate and permanent ceasefire in the Middle East.
“Our trade unions have rightly raised concerns that investment in automation and AI will lead to job losses in the council and the wider public sector. At a time when services are already under strain, Coventry needs more secure, well-paid jobs – not fewer. It’s people who keep our city and communities running.”
Campaigners are calling for the contract to be cancelled and the £500,000 to be invested in Coventry’s communities.
A Coventry City Council Spokesperson said the council was exploring how AI could improve services and deliver them more efficiently.
They added: “The council used a recognised Central Government public sector framework set-up to ensure transparency, value for money, and follow procurement legislations. Palantir was on this national framework and was awarded a temporary contract following a competitive process.
“Data protection has been a key consideration throughout this process. The contract with Palantir was awarded following our standard procurement and information governance procedures, and we are confident it meets our rigorous security and compliance requirements.
“This was always an initial 12-month pilot project that was to be reviewed to assess its impact. That review is underway.”
A Palantir spokesperson added: “We are excited to help CCC 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.”
