Palantir has made its stance clear in the ongoing debate over U.S. AI policy: America must act decisively to maintain its technological edge, and that starts with overhauling federal AI procurement, strengthening national security, and rapidly deploying AI across government agencies. In a newly released policy response to the White House’s AI Action Plan, the company lays out a framework that prioritizes operational AI readiness over abstract regulatory discussions.
Key points:
- Palantir calls for modernizing "byzantine" federal AI acquisition processes
- The company proposes a minimum 1% AI budget allocation for all government agencies
- Recommendations emphasize countering China's AI ambitions through chip diplomacy and export controls
A major theme in Palantir’s proposal is fixing what it sees as a broken federal procurement system that prevents the government from fully leveraging AI. The company argues that outdated bureaucratic processes, like the Authority to Operate (ATO) approval system, slow down AI adoption and create inefficiencies that waste taxpayer money. To address this, Palantir calls for reforming the Federal Acquisition Streamline Act (FASA), expanding the use of Other Transaction Authorities (OTAs) to accelerate AI procurement, and modernizing contracting terms to ensure agencies can rapidly adopt emerging technologies.
Beyond procurement, national security is at the core of Palantir’s recommendations. The company stresses that adversaries, particularly China, are aggressively pursuing AI dominance, and the U.S. must take stronger measures to counteract this. Palantir calls for tightened export controls to limit adversarial access to advanced AI chips and greater investments in AI-driven command and control (C2) systems to enhance U.S. military capabilities. The company also argues that privacy and security must be treated as national security issues, emphasizing the importance of secure AI deployments that protect sensitive government and citizen data.
To encourage broader AI adoption, the company makes two specific recommendations: creating agency-specific AI testbeds that utilize government data in secure environments, and mandating that at least 1% of every agency budget be spent on AI modernization efforts to "increase the quality of its service to Americans while simultaneously reducing costs."
Palantir also urges the federal government to take a more aggressive approach to AI adoption across agencies. The company highlights existing opportunities in defense, intelligence, and fraud detection where AI could have immediate benefits. It suggests expanding AI’s role in military decision-making through further investments in AI-driven battlefield intelligence and command systems. It also recommends leveraging AI for fraud detection across federal agencies, ensuring taxpayer dollars are spent efficiently. Additionally, Palantir proposes that each federal agency should be required to launch a flagship AI project within nine months to accelerate deployment.
On the global stage, Palantir believes the U.S. should take a stronger leadership role in shaping AI policy. It proposes hosting a global AI summit in Silicon Valley in 2025 as a symbolic and strategic move to reaffirm America’s AI leadership. The company also stresses the need to promote AI policies that align with democratic values, contrasting its vision with the AI approaches of authoritarian governments.
The company's submission joins those from other major tech firms including Google and OpenAI in response to the Trump administration's call for input on its AI Action Plan. While Palantir’s AI policy recommendations differ from those of Google and OpenAI, there are some commonalities. Like Google, Palantir sees government AI adoption as a priority and warns against bureaucratic inefficiencies that slow progress. Like OpenAI, it frames AI development as a national security issue, highlighting the geopolitical stakes of AI competition with China. However, Palantir is distinct in its emphasis on military AI applications, procurement reform, and operational AI readiness.
"The United States must act decisively to maintain its AI leadership position," Palantir concludes, emphasizing that success "will require significant investment and broad institutional reform, and above all, it will demand sustained commitment to America's core values and interests."