SplitAgent: A Privacy-Preserving Distributed Architecture for Enterprise-Cloud Agent Collaboration

Deploying AI agents in enterprise environments requires balancing capability with data sovereignty and cost constraints. While small language models offer privacy-preserving alternatives to frontier models, their specialization is hindered by fragmented development pipelines that separate tool integration, data generation, and training. We introduce EnterpriseLab, a full-stack platform that unifies these stages into a closed-loop framework. EnterpriseLab provides (1) a modular environment exposing enterprise applications via Model Context Protocol, enabling seamless integration of proprietary and open-source tools; (2) automated trajectory synthesis that programmatically generates training data from environment schemas; and (3) integrated training pipelines with continuous evaluation. We validate the platform through EnterpriseArena, an instantiation with 15 applications and 140+ tools across IT, HR, sales, and engineering domains. Our results demonstrate that 8B-parameter models trained within EnterpriseLab match GPT-4o's performance on complex enterprise workflows while reducing inference costs by 8-10x, and remain robust across diverse enterprise benchmarks, including EnterpriseBench (+10%) and CRMArena (+10%). EnterpriseLab provides enterprises a practical path to deploying capable, privacy-preserving agents without compromising operational capability.

Large language model (LLM) agents face a structural tension: cloud agents provide strong reasoning but expose user data, while on-device agents preserve privacy at the cost of overall capability. Existing device-cloud designs treat this boundary as a compute split rather than a trust boundary suited to agentic workloads, and existing sanitizers force a choice between policy flexibility and the structural fidelity tool calls require. In this work, we develop PAAC, a privacy-aware agentic framework that aligns planner--executor decomposition with the device-cloud boundary so that role specialization itself becomes the privacy mechanism. The cloud agent reasons over typed placeholder tokens that preserve each sensitive value's reasoning role while discarding its content, while the on-device agent identifies sensitive spans and distills each step's execution outcome into compact key findings. Sanitization confines the on-device LLM to proposing which spans to mask, while a deterministic registry performs all substitution and reversal, keeping actions directly executable on device. On three agentic benchmarks under strict privacy settings, PAAC dominates the Pareto frontier of privacy and accuracy, improving average accuracy by 15-36% and reducing average leakage by 2-6$\times$ over state-of-the-art device-cloud baselines, with the largest margins on privacy targets outside fixed entity taxonomies. We find consistent improvements on 17 additional benchmarks spanning 10 domains, including math, science, and finance.

When distributed agents exchange text across organizational boundaries, privacy leakage arises not only from explicit identifiers but also from distributional signatures such as formatting conventions, vocabulary choices, and syntactic patterns. We propose DiSan(Disentangled Sanitization), a privacy-preserving sanitization framework and a built-in component of Intern-Shannon for multi-agent collaboration. DiSan uses a two-stream encoder to factorize text into a source-invariant role subspace that preserves task semantics and a source-identifying style subspace that remains local. Federated proto-type alignment and adversarial regularization enable joint training without centralizing raw text. Experiments show that identifier-level masking is insufficient: masking 19.2% of tokens reduces TF-IDF stylometric attribution by only 18.6%. By contrast, DiSan reduces answer-level PII exposure by 20 times while maintaining 83% answer faithfulness on a distributed multi-agent RAG benchmark, and lowers Enron stylometric attribution by 73.2% under TF-IDF and 70.6% under a neural probe.