Khan climbdown: Palantir settles £50m Met row after fears of ‘unlawful’ bias

Palantir has reached a £50 million settlement with Sadiq Khan’s Metropolitan Police office following a legal dispute over a blocked £50 million contract for the use of the company's AI technology. The company claimed that the decision to reject their bid was due to political bias regarding their values and ethics, while the Met insisted that the issue was with improper procurement procedures.

The settlement allows both parties to withdraw their allegations and have Palantir re-enter the bidding process. Mayor Khan praised Palantir's contributions to the city and acknowledged that decisions should be based on merit. The dispute began in May when the Met blocked a proposed two-year contract for Palantir to provide AI technology for automating criminal intelligence analysis.

Both parties maintain that their respective decisions were based on different factors, with the Met focusing on governance, affordability, and value for money, and Palantir emphasizing its ethical concerns. The settlement comes after a trial that was set to go to a full High Court hearing in January 2027, with estimated legal costs surpassing £8 million.

The Met has initiated a new procurement process for the AI technology, ensuring fair treatment for all bidders, including Palantir.