Experts issue warning after Coles partners with controversial tech firm
- Replies 11
In a move that has raised eyebrows and concerns among industry experts, supermarket giant Coles has inked a significant deal with a data intelligence firm, Palantir, known for providing high-level analytical technology to the US Central Intelligence Agency (CIA) and the US Department of Defence.
This partnership, which aims to streamline Coles' operations and cut costs, could have far-reaching implications for the company's workforce, customers, and the retail industry at large.
This new deal with the firm involves ingesting more than 10 billion rows of data from Coles. The firm's technology, called Foundry, will analyse detailed insights into the company's 840 supermarkets, 120,000 employees, 9,000 suppliers, and $41 billion in revenue.
By analysing every aspect of the business, from individual stores and employees to shifts and allocations, Coles aims to 'redefine' its approach to its vast workforce.
However, this partnership has sparked concerns among experts.
Luke Munn, a Research Fellow in the field of digital cultures and societies at The University of Queensland, warned that Palantir's technology could significantly impact the lives and livelihoods of supermarket employees and shoppers.
‘By placing Palantir at the heart of its operations, Coles quietly smuggles in several key assumptions—that food is a commodity to be optimised, paying for labour is a risk rather than a responsibility, and data can capture everything of importance,’ he argued.
‘At a time of increased food insecurity, Australians should strongly question whether this is the direction one of our major grocery providers should take,’ he added.
Mr Munn is not the only one who voiced his concern. Professor Uri Gal, from The University of Sydney’s Business School, highlighted that this new partnership provides insights into how the supermarket perceives its employees.
‘There are various implications, like whether they view their workers as fully fledged humans with their own needs and interests, or primarily as numbered resources to extract the most possible value from,’ he explained.
While Palantir may not be a household name in Australia, it has a controversial reputation in the US and Europe due to its associations with military and intelligence agencies.
The company, founded in 2003 with the financial backing of the CIA, has become a major provider of data analysis to both private clients and government organisations.
‘This company has had a checkered past, one could say,’ Professor Gal stated. ‘Their technology has been put to use in various ways, some more ethically questionable than others.’
‘Of all the data companies Coles could partner with, Palantir has possibly the worst reputation,’ he shared.
Palantir's involvement in projects such as the US defence department's Project Maven, which develops AI technology for unmanned weaponised drones, has drawn criticism.
The company has also been accused of enabling 'serious human rights abuses' by assisting US immigration authorities in tracking and deporting illegal aliens, leading to minors being separated from their parents.
In the UK, a £330 million (AU$639 million) contract with the National Health Service (NHS) sparked outrage, with critics questioning the company's ethics and the scope of its data use.
Palantir's Founder, Peter Thiel, has also made controversial comments about the NHS, suggesting that it should be privatised.
In the last decade, the company has secured contracts worth tens of millions of dollars from the Australian Government, including agreements with the Department of Defence and the Criminal Intelligence Commission.
With Palantir’s history in mind, experts are concerned about how Coles would utilise the firm’s technology.
Professor Gal raised a few questions, ‘Are they going to use it on customer data as well? What data exactly are they collecting, and where [is] it being kept? How long are they going to keep it for? Are they sharing it with third parties?’
‘These are critical questions to which we don’t have answers,’ he added.
In signing this deal, Coles is shifting its business focus from groceries to data, according to Mr Munn.
‘Groceries and grocery store labour become more data, just like the hedge funds, healthcare, or immigrants that other Palantir clients co-ordinate,’ he said.
‘Supermarkets have been under fire over the past year for increasing profit margins through a pandemic and cost-of-living crisis, and accused of underpaying workers. The Palantir deal continues this extractive trajectory,’ Mr Munn stated.
Palantir has issued a statement in the US, announcing its recent collaboration with ‘one of Australia’s leading retailers’ to help ‘address workforce-related spend’.
Matt Swindells, Coles' Chief Operating and Sustainability Officer, was quoted saying that these systems would enable the retailer to ‘reshape our perspective on our workforce’.
Meanwhile, Coles has yet to comment on the new deal.
What are your thoughts on this new deal, members? Let us know in the comments below.
This partnership, which aims to streamline Coles' operations and cut costs, could have far-reaching implications for the company's workforce, customers, and the retail industry at large.
This new deal with the firm involves ingesting more than 10 billion rows of data from Coles. The firm's technology, called Foundry, will analyse detailed insights into the company's 840 supermarkets, 120,000 employees, 9,000 suppliers, and $41 billion in revenue.
By analysing every aspect of the business, from individual stores and employees to shifts and allocations, Coles aims to 'redefine' its approach to its vast workforce.
Coles partnered with data intelligence firm Palantir Technologies. Image source: Shutterstock
However, this partnership has sparked concerns among experts.
Luke Munn, a Research Fellow in the field of digital cultures and societies at The University of Queensland, warned that Palantir's technology could significantly impact the lives and livelihoods of supermarket employees and shoppers.
‘By placing Palantir at the heart of its operations, Coles quietly smuggles in several key assumptions—that food is a commodity to be optimised, paying for labour is a risk rather than a responsibility, and data can capture everything of importance,’ he argued.
‘At a time of increased food insecurity, Australians should strongly question whether this is the direction one of our major grocery providers should take,’ he added.
Mr Munn is not the only one who voiced his concern. Professor Uri Gal, from The University of Sydney’s Business School, highlighted that this new partnership provides insights into how the supermarket perceives its employees.
‘There are various implications, like whether they view their workers as fully fledged humans with their own needs and interests, or primarily as numbered resources to extract the most possible value from,’ he explained.
While Palantir may not be a household name in Australia, it has a controversial reputation in the US and Europe due to its associations with military and intelligence agencies.
The company, founded in 2003 with the financial backing of the CIA, has become a major provider of data analysis to both private clients and government organisations.
‘This company has had a checkered past, one could say,’ Professor Gal stated. ‘Their technology has been put to use in various ways, some more ethically questionable than others.’
‘Of all the data companies Coles could partner with, Palantir has possibly the worst reputation,’ he shared.
Palantir's involvement in projects such as the US defence department's Project Maven, which develops AI technology for unmanned weaponised drones, has drawn criticism.
The company has also been accused of enabling 'serious human rights abuses' by assisting US immigration authorities in tracking and deporting illegal aliens, leading to minors being separated from their parents.
In the UK, a £330 million (AU$639 million) contract with the National Health Service (NHS) sparked outrage, with critics questioning the company's ethics and the scope of its data use.
Palantir's Founder, Peter Thiel, has also made controversial comments about the NHS, suggesting that it should be privatised.
In the last decade, the company has secured contracts worth tens of millions of dollars from the Australian Government, including agreements with the Department of Defence and the Criminal Intelligence Commission.
With Palantir’s history in mind, experts are concerned about how Coles would utilise the firm’s technology.
Professor Gal raised a few questions, ‘Are they going to use it on customer data as well? What data exactly are they collecting, and where [is] it being kept? How long are they going to keep it for? Are they sharing it with third parties?’
‘These are critical questions to which we don’t have answers,’ he added.
In signing this deal, Coles is shifting its business focus from groceries to data, according to Mr Munn.
‘Groceries and grocery store labour become more data, just like the hedge funds, healthcare, or immigrants that other Palantir clients co-ordinate,’ he said.
‘Supermarkets have been under fire over the past year for increasing profit margins through a pandemic and cost-of-living crisis, and accused of underpaying workers. The Palantir deal continues this extractive trajectory,’ Mr Munn stated.
Palantir has issued a statement in the US, announcing its recent collaboration with ‘one of Australia’s leading retailers’ to help ‘address workforce-related spend’.
Matt Swindells, Coles' Chief Operating and Sustainability Officer, was quoted saying that these systems would enable the retailer to ‘reshape our perspective on our workforce’.
Meanwhile, Coles has yet to comment on the new deal.
What are your thoughts on this new deal, members? Let us know in the comments below.
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