The deal would have been Palantirâs largest yet in British policing, after others worth ÂŁ330m and ÂŁ240m with NHS England and the Ministry of Defence.
The row has been inflamed by the fact that Khan has previously made clear that Londoners only wanted to see public money being paid to companies that âshare the values of our cityâ.
[âŠ]
The row has cast fresh light on Palantirâs record of winning public contracts in the UK. Scotland Yard previously appointed Palantir on a much smaller contract to use AI to monitor staff behaviour in an bid to root out corrupt officers. This contract was awarded directly, without advertisement or open competition, because its value was just below the ÂŁ500,000 threshold required for City Hallâs approval.
Khan said on Thursday: âIn general terms, what youâre allowing is these private companies to almost have a loss leader, so they give you a good deal or something for nothing for a short bit of time [and] you can become reliant upon them.â
In 2023 the governmentâs chief commercial officer raised concerns with Palantir about the practice of offering public services for a zero or nominal cost to gain a commercial foothold.
Donald Campbell, director of advocacy at the tech equity campaign Foxglove, said: âPalantir is notorious for its âland and expandâ approach, in which it wins small contracts or even offers free services at first, then uses those to build a much wider role in our public services.â.
He said Khan had âseen through this practice, and put a stop to it â while rightly highlighting Londonersâ concerns over Palantirâs ethical recordâ.
[âŠ]
Martin Wrigley, a Liberal Democrat member of the Commons science and technology select committee said he was âdelightedâ by City Hallâs decision.
âTo get another contract without competition would have been a disgrace,â Wrigley said. âPalantir have failed to deliver to their promises on too many projects. Buying projects through free trials to then write the contract spec should be banned from government procurement.â
Khanâs move will be a blow to the Labour governmentâs efforts to use AI to improve policing. In January, the home secretary, Shabana Mahmood, called for police to âramp up use of AIâ and to adopt the technology âat pace and scaleâ.