Coventry City Council has announced a review of its £500,000-a-year contract with US technology firm Palantir, following protests over the company's links to the Israel Defense Forces (IDF). The council, the first in the UK to deploy Palantir's artificial intelligence (AI) systems, faced opposition from trade unions and councillors who criticised the contract due to Palantir's involvement with the IDF and its role in US immigration enforcement and NHS data management.
Deputy council leader Abdul Khan told protesters outside a full council meeting on Tuesday: 'We are reviewing the Palantir contract … and I personally agree with the sentiments regarding the divestment of all funds which are being used in the genocide all across the world, particularly at the moment in Gaza.' The contract, which began in February after a pilot in children's services, uses AI for tasks such as case-note transcription and summarising social worker records.
Cabinet member for finance Richard Brown confirmed the review but warned that the council, which has lost £1.6bn in spending power since 2010, cannot afford to ignore AI's potential. 'For any council to fail to find smarter, better and cheaper ways to offer our 700-plus services is a one-way street to section 114 land,' he said. However, he declined to comment on whether the contract would lead to job losses, amid union concerns that AI could replace human workers.
Councillor Grace Lewis, who had previously called the contract 'indefensible', welcomed the review but urged transparency. 'This review must be urgent, transparent and include campaigners – with clear outcomes within four weeks,' she said. Palantir, co-founded by Trump donor Peter Thiel, has faced criticism over its contracts with Israel's military, with CEO Alex Karp previously stating that the company's technology 'kills Palestinians, mostly terrorists' when challenged at a public forum.
