Health minister James Frith has raised concerns about public mistrust of Palantir, a US defence and health tech company, and its potential impact on data sharing with the NHS. New figures show tens of thousands of patients have opted out of allowing their medical data to be used in research projects. Frith’s comments, in a letter to Layla Moran, chair of the Commons health committee, follow a rise in data opt-outs, with 60,000 more people withdrawing their private information under the national data opt-out mechanism between mid-May and mid-July.

Doctors and patients’ groups are urging Labour to use a break clause in Palantir’s seven-year contract, citing its work with the Israeli military and Donald Trump’s ICE immigration agency. Palantir and its supporters claim its AI-driven technology has reduced NHS waiting lists for surgery, with a spokesperson stating that trusts using the technology recorded 110,000 additional operations, a 15% reduction in discharge delays for long-stay patients, and a 6.8% improvement in cancer diagnosis times within 28 days. NHS England reported similar numbers but said it could not draw conclusions about cause and effect. The government’s statistics watchdog is investigating the data.

Frith noted the rise in opt-outs was “modest” but would still be monitored. Opting out does not prevent the use of medical records for direct care, such as live operations, but stops their use for research and planning. Frith warned that the 10-year health plan’s benefits might not be realized if patients stop sharing their data. Foxglove, a tech equity campaign, welcomed the minister’s acknowledgment of public mistrust, with Tom Hegarty stating that tens of thousands of people have opted out in recent months.

Frith indicated a policy shift on whether NHS trusts must use the Palantir-powered federated data platform (FDP). Previously, a health minister had stated trusts would be told to “must use” parts of the platform. Now, Frith has said there is no requirement to use the FDP, and trusts may prefer an alternative. Moran, a Liberal Democrat MP, welcomed the “softened stance” but emphasized the need for the government to switch providers and not extend the current contract. A spokesperson for the Department of Health and Social Care stated there has been no change in position, noting the FDP has never been mandatory and trusts have always been able to choose alternative solutions where they meet local needs.

Palantir’s government contracts have faced controversy, including an apology from ministers after it was revealed the company’s staff had access to identifiable patient data. London’s mayor, Sadiq Khan, has also blocked the Metropolitan police from awarding Palantir a £50m contract to use its AI for investigations, citing a desire to fund companies that “share the values of our city.” Palantir is suing over the mayor’s decision. Frith said the rise in opt-outs was in line with media interest in Palantir’s position, but the government is still considering whether to end the £330m contract.