Palantir and MOPAC resolve High Court procurement dispute over AI contract

Palantir launched the challenge in June after the Mayor's Office for Policing and Crime (MOPAC) stepped in to block a £50m artificial intelligence (AI) contract between the Metropolitan Police and the tech firm.

At the time, the Mayor's office said the Met did not present its procurement strategy for approval as required and fully engaged with only one potential supplier, failing to adequately demonstrate value for money at that contract size. It insisted the decision was not politically motivated.

City Hall had, however, also voiced concerns about using public money to support firms that "act contrary to London's values", a reference to criticism of Palantir's work with the Israeli military and US immigration enforcement.

The Met Commissioner Sir Mark Rowley meanwhile said the intervention could lead to service cuts. The police force had plans to cut 1,150 jobs in the face of budget pressures, with the work of 500 of those roles to be done by AI tools.

Palantir characterised the intervention as politicised, with its UK chief executive Louis Mosley accusing the Mayor of "putting politics over public safety".

A full hearing of the case was due in January next year. But MOPAC and Palantir released a joint statement this week to announce a resolution to the proceedings.

"As part of that resolution, Palantir and MOPAC have each withdrawn their allegations against each other in their pleadings," the statement said.

It said MOPAC’s May 2026 decision not to enter into the contract, in response to the Metropolitan Police Service’s (MPS’s) initial proposal, was not based on Palantir’s values or ethics, or any wider reporting about the company.

"MOPAC recognises Palantir's concerns that media reporting of a statement from the Mayor's spokesperson before the decision was taken could have incorrectly created the impression that an assessment of the company’s values had been a factor in that decision," it continued.

The joint statement said MOPAC considered the contract based on its statutory role of examining spend proposals against the appropriate legal tests and relevant guidance on procurement, governance, affordability, and ensuring value for money for Londoners.

Palantir will be able to compete again in the procurement process, which is set to be restarted.

MOPAC said it will continue to review the MPS's proposals and ensure that "all relevant software companies (including Palantir) can compete for the UOA contract, in line with the law".

The Mayor of London, Sadiq Khan, said: “London is the technology capital of Europe, and I am proud that leading software firms choose the city as their home. Palantir makes a significant contribution to jobs and investment in the capital, employing a large number of Londoners whose services have been procured legally by organisations across the UK and beyond.”

Adam Carey