Palantir drops £50m Met Police AI deal legal challenge

Technology firm Palantir has dropped its legal challenge against the Mayor's Office for Policing and Crime (MOPAC) concerning a £50 million contract with the Metropolitan Police. MOPAC confirmed on Wednesday that its decision to block the two-year software deal has not been reversed.

In a joint statement, MOPAC clarified that its decision was based on its legal obligation to scrutinise spending proposals and ensure value for money. The office stated the decision was not influenced by Palantir's values or ethics, and that the company is welcome to bid when the contract is re-tendered. Neither party has incurred payment to the other, and each will bear their own legal expenses.

Background to the dispute

MOPAC blocked the proposed contract for artificial intelligence tools, intended to automate intelligence analysis in criminal investigations, in May. The Metropolitan Police had sought MOPAC's approval for its procurement strategy, but deputy mayor for policing and crime, Kaya Comer-Schwartz, stated in a letter to the commissioner that the force had only seriously considered one supplier. This failure to seek MOPAC's approval was described as a 'clear and serious breach' of procurement rules.

Palantir filed a lawsuit in June, alleging that MOPAC had unlawfully vetoed the deal by wrongly considering the company's values and ethics. MOPAC denied these claims. The case was scheduled for trial in January, with London mayor Lord Sadiq Khan having agreed to provide access to his text messages and emails as part of the proceedings.

Metropolitan Police Commissioner Sir Mark Rowley indicated in June that the force's process had been legally and commercially compliant. He warned that the non-renewal of such services could lead to cuts in staff and operational capacity. The Palantir system was projected to enable the Met to reduce its workforce by 500 employees, a measure considered in response to budget shortfalls of £100 million this year and £125 million next year. The force's budget for 2026-27 included plans for 1,150 job reductions, with the AI tools intended to handle the analytical work for 500 of those roles, speeding up intelligence reports and mobile phone analysis.

Sir Mark also noted that by March 2026, the Metropolitan Police had fewer officers per 100,000 residents than at any point since 1981.

Next steps

MOPAC is working with the Metropolitan Police to re-run the contract process promptly. The exact timeline for this re-tender and the final decision on the software contract remain to be confirmed.