Tom Watson, the former Labour deputy leader and peer, has taken a full-time position at Palantir, the controversial US artificial intelligence company, as it navigates mounting pressure from local and national authorities over its expanding role in British public services.
Watson will serve as Palantir's UK senior vice-president, working alongside the company's UK and Europe chief executive Louis Mosley. His appointment comes as Palantir faces legal challenges from Sadiq Khan's administration and seeks to expand its footprint across the British public sector. The company already operates more than £500 million worth of UK public-sector contracts, spanning the NHS, Ministry of Defence and police forces.
Palantir, co-founded by Trump-supporting billionaire Peter Thiel, specialises in data analytics and surveillance technology. Its deepening involvement in British public services has triggered sustained public and political opposition. Alex Karp, the company's chief executive, said:
"This is just the latest chapter of Tom's forty-year fight for better public services. We are fortunate to have him guide us as we help the British government to deliver for the British public."
What will Watson's role involve?
Watson's responsibilities will centre on deepening the social and economic value Palantir's work generates through improved British public services, jobs and skills. He has highlighted two areas where Palantir holds contested contracts: accelerating NHS diagnosis, treatment and hospital discharge, and enabling police forces to investigate crime and tackle corruption. According to Bloomberg, Watson's remit includes supporting British jobs across public contracts and the company's broader UK public-sector expansion.
What is Watson's background in politics and business?
Watson stepped down from parliament in 2019 after serving as a defence minister and minister for digital engagement under Gordon Brown. Since leaving elected office, he has advised the gambling and music industries. From 2024 onwards, he worked part-time for Palantir, including accompanying Mosley at Labour party conferences. He has now taken a leave of absence from the House of Lords and relinquished his parliamentary pass while employed by Palantir in London.
Why is Palantir's UK presence controversial?
Palantir's expansion into British public services has drawn criticism from civil liberties campaigners and opposition politicians. The company faces legal action from Khan's administration over one of its contracts and is defending its involvement in NHS data systems. Amnesty International is campaigning for NHS trusts and integrated care boards to refuse Palantir's technology, citing concerns over data governance and surveillance implications.
The Ministry of Defence maintains a substantial relationship with the company: its three-year enterprise agreement, running from April 2026 to March 2029, is valued at £240.6 million. Additionally, the National Energy System Operator awarded Palantir a £21.2 million no-bid contract to continue licensing and support for its Connections and Skip Rates systems, running from 8 September 2026 to 31 July 2027 with possible extensions to 31 July 2028.
Is this part of a wider pattern?
Watson's appointment exemplifies what critics describe as a revolving door between British politics and technology companies. Former deputy prime minister Nick Clegg joined Meta, former prime minister Rishi Sunak took roles in venture capital, and former chancellor George Osborne moved into the tech sector. Keir Starmer's AI adviser Matt Clifford also transitioned to industry roles, initially attempting to retain a chair at a government science and technology research body before stepping down under pressure over conflicts of interest.
Tom Brake, chief executive of Unlock Democracy, a campaign group focused on democratic accountability, expressed concern about the trend.
"The revolving door is proving very fruitful for big tech,"he said, adding:
"The only surefire way to stop tech companies benefiting from privileged information acquired by ministers or senior civil servants is to introduce an enforceable five-year ban on taking up industry posts."
What happens next?
The NHS federated data platform contract is scheduled for renewal in February 2027, a date that will test whether the incoming government maintains or reconsiders Palantir's role in the health service. The National Energy System Operator's contract with Palantir can be extended until 31 July 2028, subject to performance and policy review.
Key Facts:
- Tom Watson becomes Palantir's UK senior vice-president, responsible for expanding the company's British public-sector work and supporting job creation
- Palantir holds over £500 million in UK public-sector contracts across the NHS, Ministry of Defence and police forces, with the Defence agreement alone worth £240.6 million through March 2029
- The company faces legal challenges from London's mayor and campaigns from civil liberties groups over its involvement in NHS data systems and surveillance technology
- Watson's appointment reflects a broader pattern of senior British politicians and officials moving into technology sector roles, prompting calls for stronger conflict-of-interest safeguards
- The NHS contract renewal in February 2027 will be a critical juncture for Palantir's continued involvement in the health service
