Health officials are expressing serious apprehension regarding the reputation of AI firm Palantir, which has been awarded a significant £330 million NHS contract. Internal briefings obtained under the Freedom of Information Act reveal that concerns about the company’s ties to controversial operations in the United States could impede the deployment of a crucial data system across the NHS.
The Background of the Controversy
In 2023, the UK government selected Palantir, a US-based technology firm known for its surveillance capabilities and connections to the Israeli military, to develop an AI-driven data platform aimed at integrating health information across the NHS. However, following calls from Labour leader Keir Starmer for expedited implementation, Whitehall officials have privately indicated that public perceptions of Palantir could hinder the project’s success and value.
By the summer of 2025, fewer than half of England’s health authorities had adopted the technology, largely due to opposition from both the public and medical professionals. The British Medical Association (BMA) has expressed concerns that its members may refuse to utilise the system, citing Palantir’s involvement in US immigration enforcement as a significant issue.
Political Repercussions and Public Sentiment
The backlash against Palantir intensified in Parliament, where MPs have described the firm as “ghastly” and “highly questionable.” Compounding the company’s image issues, allegations surrounding former Labour minister Peter Mandelson’s connections with convicted sex offender Jeffrey Epstein have emerged, revealing that Palantir had previously employed Mandelson’s lobbying firm, Global Counsel. Mandelson had introduced Starmer to Palantir’s CEO, Alex Karp, at the firm’s Washington office before his dismissal.
In a private briefing for Wes Streeting, the Shadow Health Secretary, officials acknowledged that public perception of the Federated Data Platform (FDP) was being negatively influenced by Palantir’s profile. They warned that this could create challenges in progressing with the FDP and in encouraging local participation from GP data.
Calls for Transparency and Action
The BMA has long opposed Palantir’s role in NHS operations, and the recent disclosures have prompted a renewed demand for transparency regarding the company’s public sector contracts, which include a £240 million deal with the Ministry of Defence and various police collaborations. Streeting has made efforts to clarify his relationship with Mandelson, releasing WhatsApp messages that do not mention Palantir, but this has not alleviated concerns.
While NHS organisations using Palantir’s technology have increased from 118 to 151 since June, the current figures remain significantly below the target of 240 by year-end. Critics, including former Conservative minister David Davis, have flagged a potential “value-for-money issue” with the Palantir contract, asserting that the firm’s controversial background raises serious questions about its suitability for the NHS.
The Company’s Defence
In response to these mounting criticisms, Palantir asserts that its technology is enhancing public services in the UK, citing improvements such as 99,000 additional NHS operations and reduced hospital discharge delays. Similarly, a spokesperson for the Department of Health and Social Care defended the Federated Data Platform, claiming it is already delivering benefits to the NHS by enhancing patient care and operational efficiency.
Why it Matters
The ongoing saga surrounding Palantir’s NHS contract underscores a broader tension between technological innovation and public trust in healthcare. As concerns about data privacy and corporate ethics intensify, the government’s ability to navigate these challenges will be crucial for maintaining public confidence in the NHS’s future. The potential fallout from this situation could significantly impact how health technology partnerships are perceived and managed moving forward, shaping the landscape of public health initiatives in the UK.
