Coles is cutting ties with controversial American data firm Palantir following sustained community pressure over the partnership.

The deal, which gave Palantir access to 10 billion rows of data from the Australian supermarket giant to identify operational efficiencies, will end next year, with Coles confirming it will not be renewed.

The decision follows months of pressure over Palantir’s ties to militaries, intelligence agencies and US Immigration and Customs Enforcement (ICE).

“Coles and Palantir have agreed to conclude their partnership after three years of collaboration,” a Coles spokesperson said.

“Palantir’s technology has delivered value across Coles’ operations, particularly in rostering, store operations and supply chain planning.

“The technology has helped Coles drive operational efficiencies that ultimately mean we have the products available when customers need them and team members in the right place at the right time to serve our customers.”

‘Only just the beginning’

The partnership saw Coles deploy Palantir’s Foundry analytics tool and AI platform across its more than 800 stores, combining its legacy data systems and machine learning into a shared, end-to-end view of its retail operations.

When the deal was signed in early 2024, a Coles spokesperson described it as an “innovative approach to driving operational excellence and improving the way Coles designs, executes and continually enhances its end-to-end workforce strategy and integrated supply chain functions”.

“The most exciting part is that we are only just beginning – with a detailed roadmap of work to deliver over the coming years in line with our Simplify and Safe to Invest program,” the spokesperson said in early 2024.

Palantir was founded by US venture capitalist Peter Thiel and has faced controversy over its work with ICE, intelligence agencies and military organisations around the world.

The company also has close ties to the CIA and UK Ministry of Defence.

Campaign claims a win

Earlier this year, activist group GetUp launched a campaign calling on Coles to ditch the deal with Palantir.

Its petition has now gained more than 85,000 signatures, with GetUp also placing digital billboards near 700 Coles stores around the country.

GetUp claimed victory in an email to supporters late last week.

“The CIA-linked data and surveillance company that had quietly wired its way into 840+ Coles stores across the country will be booted out at the end of its current contract,” the GetUp email said.

“Coles tried to shut all of it down – and it stuck with Palantir for months.

“First they ignored us, despite multiple attempts to reach out.

“Then they threatened us with letters demanding we pull our ads and issue an apology.

“It’s only in the last few weeks, with the shareholder vote around the corner adding yet another layer of pressure, that Coles changed tack.”

In its statement, Coles denied that the Palantir deal involved surveillance of workers or customers.

“Coles use this software as a data integration and analytics software platform, which helps our team members make practical, informed decisions across our business,” the spokesperson said.

“The software is used for bakery production planning, trading performance analysis and rostering.

“It’s an operational platform focused on helping stores run more effectively.

“Palantir does not control the data, nor can it independently repurpose it.”

Coles also denied that Palantir had access to CCTV, facial recognition or any of its crime-prevention measures.

Palantir earlier this year launched legal action against the London Mayor’s office after its deal with the Metropolitan Police worth 50 million pounds ($94 million) was blocked.