US tech firm Palantir has secured a contract with the UK’s financial regulator as part of a push to tackle fraud with AI.
The Peter Thiel-founded organisation has worked closely with the UK government across several sectors including the NHS, law enforcement and the Ministry of Defence (MoD).
The new contract, awarded by the Financial Conduct Authority (FCA) will see the Palantir analyse sensitive UK financial data to bolster fraud detection methods.
Palantir’s work with the British government has been a source of controversy, in part due to the company’s extensive operations in highly criticised areas including Israeli military activity, the US government’s Immigration and Customs Enforcement (ICE) and broader concerns over its role in invasive surveillance.
Palantir currently holds more than £500m in UK public sector deals with the FCA contract worth more than £30,000 a week.
The placing of sensitive financial data in the hands of Palantir has sparked new concerns.
Law firm Hickman & Rose partner Christopher Houssemayne warned the Guardian: “If the FCA relies on an AI-based detection model, a bad actor could take steps to influence that system when it reviews material.”