The Palantír of the 21st Century: Ethical Use of Artificial Intelligence (AI) 

According to Bank of America Global Research, AI could contribute up to $15.7 trillion to the global economy by 2030—exceeding the current combined output of China and India (Marr, 2025). This staggering figure reflects the transformative potential of AI and underscores the immense responsibility we face in guiding AI development. As AI systems grow more powerful, ethical governance and oversight becomes as important as AI performance. 

The palantíri—mystical seeing stones—were tools of immense power, capable of revealing distant events and facilitating communication across vast expanses. Yet, in the wrong hands, the Stones became instruments of manipulation and despair.  

Author Disclosure and Credentials 

Before continuing, it is important to offer two key disclosures: 

AI Governance Certification: I am certified as an AI Governance Professional (AIGP), a designation from the International Association of Privacy Professionals (IAPP). This certification represents a formal understanding of responsible AI use, including algorithmic accountability, ethical deployment, regulatory frameworks, and bias mitigation. 

Personal Investment in Palantir Technologies: In full transparency, I am also an investor in Palantir Technologies. While this article critically engages with the company’s practices and societal impact, my investment does not bias my commitment to responsible AI development or ethical oversight. 

Modern Parallels: Palantir Technologies and the Real‑World Palantíri 

Founded in 2003, Palantir has positioned itself at the nexus of technology and governance, offering platforms like Gotham and Foundry to process and analyze vast datasets for clients ranging from intelligence agencies to private corporations. The tools have been lauded for their capabilities in counterterrorism and fraud detection, yet recent developments have thrust Palantir into the spotlight, raising pressing questions about privacy, surveillance, and the ethical use of AI. With the rollout of its Artificial Intelligence Platform (AIP), Palantir has significantly accelerated growth in U.S. commercial markets—posting over 70% revenue growth in that sector alone during Q1 2025 and achieving a 44% operating margin. Management has raised its full-year revenue and income guidance, signaling confidence in a robust pipeline of government and defense contracts (Motley Fool Staff, 2025). 
 
Alongside this financial success, serious concerns are emerging about Palantir’s expanding role in federal surveillance infrastructure. According to The Economic Times (2025), Palantir is developing a unified data platform that will tie together the private records of millions of Americans from agencies such as the Internal Revenue Services, Social Security Administration, and Centers for Medicare & Medicaid Services. This cross-referencing capability, initially designed for battlefield intelligence, could now enable an unprecedented level of insight into citizens' lives. While marketed as a tool for government efficiency and modernization, the potential risks to civil liberties, data privacy, and democratic accountability are profound (Economic Times, 2025). 

AI Run Amok: Tay and the Lesson of Misuse 

To understand the risks of unleashing ungoverned AI systems, one must look no further than Microsoft's 2016 chatbot, Tay. Released on Twitter as a conversational AI, Tay was meant to mimic and learn from human interaction. Within hours, however, users began flooding it with offensive and inflammatory content. Tay, learning without a moral framework or moderation, began repeating and amplifying the worst of what it encountered—spouting hate speech, racism, and conspiracy theories. 

Microsoft shut Tay down within 16 hours. The incident remains a powerful lesson in what can go wrong when AI systems lack ethical guardrails, content filtering, and real-world oversight. Like the Palantír in Denethor’s hand, Tay became a tool of self-destruction when placed in the wrong context, manipulated by the very people it was meant to serve. 

In Tolkien’s essay The Palantiri, he noted the Stones “were originally 'innocent,' serving no evil purpose” (Tolkien, 2020, pg. 421). But like modern AI, the Stones’ nature could be corrupted by misuse or malicious intent. The parallel is striking: powerful tools are only as ethical as those who wield them. 

Deepfakes: The Modern Illusion of Truth 

The palantír could show real images, yet the Stones were dangerous as only part of the truth was revealed, and those without wisdom misread them. Today, that danger is amplified through deepfakes, AI-generated images, videos, and audio that simulate real people saying or doing things they never did. Deepfakes have been used to create fake political speeches, revenge porn, and even synthetic news reports, eroding public trust in digital information. 

Just as Sauron used the palantír to manipulate Denethor with selective truth, deepfakes represent an adversarial use of AI—weaponizing illusion and exploiting our reliance on visual authenticity. AI tools, while technologically impressive, demand ethical frameworks, legal boundaries, and educational efforts to mitigate their harm. 

Truth Without Context: A Lesson from Gandalf 

Gandalf offers a profound warning in The Return of the King: 

“The Stones of Seeing do not lie...” he explains but cautions that Sauron can “cause [users] to mistake the meaning of what they see” (Tolkien, RoK, 2004, pg. 878).  

This insight perfectly encapsulates the problem of data poisoning and adversarial attacks in AI. While the AI system (like the palantír) may technically function correctly—returning valid data or generating plausible responses—malicious actors can inject misleading signals, corrupt training data, or manipulate outputs to induce false interpretations. 

"I Am the Lawful Master of the Stone": Training, Trust, and Stewardship in AI 

In The Return of the King, Aragorn declares: “I am the lawful master of the Stone, and I had both the right and the strength to use it...” (Tolkien, RoK, 2004, pg. 780).  

This declaration speaks to Aragorn's earned authority and ethical preparedness. He does not claim the palantír out of vanity, but from a place of readiness and accountability. In today's context, Aragorn’s example underscores the importance of trained and authorized access to powerful AI systems. 

Gandalf earlier warns that “perilous to us all are the devices of an art deeper than we possess ourselves” (Tolkien, 2004, RoK, pg. 597). Gandalf captures the essence of our modern unease with AI. Just as the palantír offered power without full understanding, today's AI systems can produce results that outstrip the technical or ethical comprehension of their users. Gandalf’s caution is a timeless reminder: tools born of deep, opaque knowledge require even deeper wisdom to wield responsibly. 

Tolkien noted that the palantíri “could not themselves survey men's minds, at unawares or unwilling, for the transference of thought depended on wills of the user on either side” (Tolkien, 2020, pg. 427). This resonates with the modern concept of Human-in-the-Loop (HITL) design. AI systems must remain interactive tools, governed by informed users, not autonomous entities replacing decision-makers. 

Denethor: A Case Study in AI Misuse and Despair 

Denethor, Steward of Gondor, offers a cautionary tale in unregulated technological use. Unlike his forebears who stored the Palantír in high places—literally and figuratively—Denethor kept the seeing stone in his sole possession, using it obsessively and recklessly (His precious?).  

He becomes a tragic figure, gripped by despair and acting on half-truths. Gandalf reveals that Denethor used it without the discipline or clarity of mind required. In the end, Denethor clutches the stone to his chest and burns alive, still fixated on its visions. This misuse of power parallels today’s risks of AI obsession without ethical boundaries. 

Forgotten Lore: A Warning from Unfinished Tales 

In Unfinished Tales, Tolkien observes: “[The Palantíri] were by the people generally forgotten, and the rhymes of lore that spoke of them were if remembered no longer understood.” (Tolkien, 2020, pg. 420) 

This passage offers a sobering reminder: even the most powerful tools can be rendered useless—or dangerous—when their purpose, context, or function is forgotten. In the realm of AI, this translates directly to the need for ongoing documentation, algorithmic transparency, and organizational memory. Otherwise, the tools become mysterious and subject to misuse and misunderstandings.  

Tolkien also noted it was possible to guard against the palantíri’s sight by a method known as “shrouding” (Tolkien, 2020, pg. 426). This anticipates today’s right to opt-out from AI-driven decisions, a principle now enshrined in the EU AI Act, which gives individuals the right to be excluded from fully automated processes (European Commission, 2024). Organizations will need to comply with such regulations or face penalties that could lead up to prohibiting AI products and services.  

Accountability in the Age of Generative AI 
 
Beyond issues of surveillance and misinformation, AI also raises profound legal and ethical questions around intellectual property. In April 2025, twelve copyright lawsuits filed by U.S. authors and newspaper publishers against OpenAI and Microsoft were consolidated into a single case in New York. Plaintiffs—including prominent figures like John Grisham, Ta-Nehisi Coates, and Michael Chabon—allege that AI developers scraped their copyrighted works without permission to train large language models. The court’s decision to centralize the cases underscores the systemic nature of these grievances and the growing demand for accountability in how AI is trained and monetized (Creamer, 2025). As AI becomes increasingly generative, ethical deployment must be grounded not only in accuracy and fairness, but also in consent and compensation for human creators. 

Conclusion: Don't Be a Denethor—Be an Aragorn 

The lessons of the Palantíri—and the risks of uncontrolled power—are more relevant than ever. AI is not something to be feared blindly; rather, it demands informed stewardship. 

Regulatory strides like the EU AI Act offer a promising path forward. By mandating transparency, requiring Human-in-the-Loop design, and giving individuals opt-out rights, Europe is laying the groundwork for a future where AI serves humanity (European Commission, 2024). 

Just as Aragorn approached the palantír with humility, strength, and purpose, so too must we engage AI with wisdom, training, and ethical grounding. Don't be a Denethor—consumed by distorted visions and unchecked despair. Be an Aragorn: prepared, principled, and boldly charging into the unknown with eyes, not just one eye, wide open. 

References 

Creamer, E. (2025, April 4). US authors’ copyright lawsuits against OpenAI and Microsoft  

combined in New York with newspaper actions. The Guardian. https://www.theguardian.com/books/2025/apr/04/us-authors-copyright-lawsuits-against-openai-and-microsoft-combined-in-new-york-with-newspaper-actions 

Economic Times. (2025, June 4). Palantir to create vast federal data platform tying together  

millions of Americans' private records, stock jumps. https://economictimes.indiatimes.com/news/international/us/palantir-to-create-vast-federal-data-platform-tying-together-millions-of-americans-private-records-stock-jumps/articleshow/121521062.cms 

European Commission. (2024). EU AI Act: A comprehensive framework for trustworthy artificial  

intelligence. https://digital-strategy.ec.europa.eu/en/policies/european-approach-artificial-intelligence 

Leswing, K. (2025, April 26). Palantir is surging: The stock leads Nasdaq gains so far this year  

as federal work expands. Investopedia. https://www.investopedia.com/palantir-is-surging-the-stock-leads-nasdaq-gains-this-year-as-federal-work-expands-11745485 

Marr, B. (2023). AI strategy: Unleash the power of artificial intelligence in your business. Wiley. 

Motley Fool Staff. (2025, June 20). Before you buy more Palantir Technologies, read this. The  

Motley Fool. https://www.fool.com/investing/2025/06/20/before-you-buy-more-palantir-technologies-read-this/ 

Tolkien, J. R. R. (2020). Unfinished tales of Númenor and Middle-earth (C. Tolkien, Ed.; Del  

Rey mass market ed.). Del Rey. 

Tolkien, J. R. R. (2004). The Return of the King (50th anniversary ed.). HarperCollins.