New technology aims to improve border controls and curtail smuggling, advancing Ecuador’s digital transformation.

On May 29, 2025, the Ecuadorian government entered into a significant partnership with U.S. data analytics company Palantir, marking a pivotal step toward modernizing the country’s customs control system. The collaboration between the National Customs Service (Senae) and the National Telecommunications Corporation (CNT) aims to leverage cutting-edge technology in the fight against illicit trade.

President Daniel Noboa, speaking at the contract signing event at Carondelet Palace, underscored the importance of intelligence and technology in enhancing national security. “Security is not defended only with force; it is also defended with intelligence and the development of new technologies,” he stated.

Tackling Illicit Trade with AI Technology

The Palantir software, designed to streamline risk management in customs, is expected to revolutionize the way Ecuador handles border security. With a focus on integrating large volumes of data, Palantir Foundry will assist in real-time risk identification and analysis, particularly concerning smuggling activities. According to Noboa, in 2024, Ecuador seized nearly USD 66 million worth of illegal goods entering the country and prevented over USD 3 billion in illicit exports, primarily drugs.

Sandro Castillo, director of Senae, emphasized the modernization of customs operations with the addition of Palantir’s advanced software. The move is part of Ecuador’s broader digital transformation initiative, aiming to transform the National Customs Service into a “smart” agency capable of safeguarding legitimate trade while counteracting illegal activity.

The platform’s AI-powered capabilities will process data from various sources, including import and export declarations, cargo manifests, GPS tracking, and police intelligence. This integration will help identify discrepancies, detect irregular routes, and flag suspicious activities, allowing authorities to respond with precision.

Strengthening Customs Infrastructure

The new system also supports the upgrade of Senae’s infrastructure. The agency’s servers are now hosted at the CNT data center, offering expanded storage capacity, improved computing power, and reduced risks from outdated equipment. This technological overhaul aims to ensure the resilience and security of Ecuador’s customs operations.

With a clear goal to facilitate more effective enforcement without obstructing legal trade, Castillo highlighted that the AI-driven platform would enhance real-time tracking of illicit networks and improve overall customs procedures. The platform also includes a module called Customs Control Tower 360, providing managers with detailed insights into foreign trade operations, such as cargo performance trends at ports.

Palantir’s Global Role and Controversies

Palantir Technologies, founded in 2003 following the September 11 terrorist attacks, has evolved into one of the world’s leading intelligence companies. Its software was credited with aiding the U.S. in locating Osama bin Laden. Since then, Palantir has expanded its services to military and law enforcement agencies globally. However, the company’s association with former U.S. President Donald Trump has drawn both attention and criticism.

The company’s involvement with U.S. Immigration and Customs Enforcement (ICE) has sparked debates over privacy concerns, particularly regarding its use of surveillance tools for tracking individuals. Additionally, Palantir’s role in several high-profile defense and security projects, such as the development of the “Golden Dome” missile defense system in partnership with SpaceX and Anduril, has further fueled controversies over its opaque operations.

Legal Framework and Cost Transparency

Although the contract was signed with CNT, the software will be utilized primarily by Senae. The exact cost of Palantir’s services remains undisclosed, with Senae paying CNT approximately USD 6 million for the infrastructure and software services. The details of the agreement, including its legal framework and terms, have not been made public, leaving room for speculation about the terms of the deal.

Stalin Andino, the Legal Secretary to the Presidency, clarified that CNT is not merely an intermediary but is seeking to diversify its business opportunities through this agreement. The full details of the negotiation remain under wraps, with authorities yet to provide a comprehensive breakdown of the contract.

A Smart Future for Customs Enforcement

As Ecuador navigates the complexities of modern trade and security, the partnership with Palantir signals a major leap forward in combating smuggling and protecting legitimate commerce. By incorporating advanced AI into its customs framework, the Noboa administration aims to build a more secure, efficient, and transparent trade environment, all while driving the country’s broader digital transformation agenda.

The government is optimistic that Palantir’s innovative technology will play a key role in mitigating the risks associated with illicit trade while ensuring that Ecuador remains a competitive and secure player in international commerce.