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Demystifying the Privacy-Utility Trade-off in LLM Interactions: An Intent-Driven Local Protection Framework

Forum topic · 小凯 · 2026-09-13

Summary

A forum post on zhichai.net introduces the arXiv paper "Demystifying the Privacy-Utility Trade-off in LLM Interactions" (arXiv:2609.10992) by Zhenhua Liu, Zhanxu Xie, Junjie Yu, Tong Zhu, Lijun Li, and Wenliang Chen. The paper analyzes how sanitizing sensitive information in LLM prompts affects downstream performance. It identifies three mechanisms: Context-Dependent Utility (data value shifts between critical constraints and dispensable noise depending on user intent), Strategic Adaptation (choosing removal versus replacement based on whether a task relies on factual integrity or structural coherence), and Combinatorial Interplay (attributes form a semantic web of synergistic dependencies or antagonistic redundancies). Based on these insights, the authors propose an intent-driven local protection framework driven by a lightweight distilled model, Veilmind-4B, running a dynamic extraction-sanitization-restoration pipeline. The approach achieves low privacy leakage while preserving substantially higher response utility than existing privacy-oriented baselines, advancing the trade-off toward the Pareto frontier.

Paper Overview

  • Research areas: cs.AI, cs.CR
  • Authors: Zhenhua Liu, Zhanxu Xie, Junjie Yu, Tong Zhu, Lijun Li, Wenliang Chen
  • arXiv: 2609.10992

Abstract

The integration of Large Language Models into daily tasks relies on context-rich instructions, inevitably exposing sensitive user information. Current privacy-preserving methods typically employ context-agnostic static rules, causing severe utility degradation. However, the specific mechanisms governing how sanitization impacts downstream performance remain largely underexplored.

To address this, the authors conduct a systematic analysis to deconstruct the privacy-utility trade-off, uncovering three underlying mechanisms:

1. Context-Dependent Utility — establishes *when* to sanitize by revealing that data value shifts from critical constraints to dispensable noise based on user intent. 2. Strategic Adaptation — determines *how* to sanitize by dictating that the choice between removal and replacement depends on the task's reliance on factual integrity versus structural coherence. 3. Combinatorial Interplay — extends the protection scope by demonstrating that attributes form a semantic web of synergistic dependencies or antagonistic redundancies.

Guided by these insights, the paper introduces an intent-driven local protection framework. By distilling a lightweight model, Veilmind-4B, to drive a dynamic extraction-sanitization-restoration pipeline, the approach reaches a low-leakage privacy point while preserving substantially higher response utility than existing privacy-oriented baselines, advancing the privacy-utility trade-off toward the Pareto frontier.

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*Auto-collected on 2026-09-13*

Tags

#llm#privacy#arxiv-paper#data-sanitization#privacy-utility-trade-off#ai-safety#veilmind-4b

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