alt Hacker NewsThe last line of GP's comment is key here: "Who do I sue if Palantir decides I am an illegal?"
This shouldn't make as much of a difference as it does, but due to how our legal system works, it's much harder to get meaningful legal satisfaction when an algorithm (or other inhuman distributed system) commits a crime against a person than when a person does so.
I think you're confused about the mechanism involved. It's hard to get satisfaction due to e.g. qualified immunity. The fact they use technology is largely irrelevant. You couldn't sue the NSA for spying on you before AI either.