In an interview on the BBC podcast Political Thinking with Nick Robinson, Lord Watson said UK ministers could get themselves "in a lot of trouble" if they let public opinion override the rule of law in procurement. His comments come as Prime Minister Andy Burnham faces significant pressure from Labour MPs and unions to drop Palantir from government contracts, including a £330 million software deal with the NHS.
Palantir, co-founded by billionaire Peter Thiel, has provided AI-powered software to the Israeli military and the White House's ICE immigration crackdown, sparking protests. The company is also fighting London Mayor Sadiq Khan in court after he blocked a £50 million contract to use its AI in Metropolitan Police investigations. Palantir already has an annual turnover of £427 million in the UK.
Watson told the podcast: "One of the things I'd say to my former colleagues is: do you want to let the rule of law to lead procurement practice, or do you want to let mob rule to lead procurement practices?" He added that the company is "very targeted by the people that are targeting Israeli companies" due to its work in Israel.
When asked if he would work with a Reform UK government on immigration crackdowns, Watson said: "We don't actually work in that sector, but yes, of course we would."
Watson, who served as a defence minister and minister for digital engagement under Gordon Brown, stepped down from parliament in 2019. He has taken a leave of absence from the House of Lords and relinquished his parliamentary pass while working for Palantir, which he called "the most interesting company on the planet" when announcing his new role last month. The company said his job includes deepening "the social and economic value its work creates through better British public services, jobs and skills".