Reinforcing privacy reasoning in LLMs via normative simulacra from fiction
Authors: Matt Franchi, Madiha Zahrah Choksi, Harold Triedman, Helen Nissenbaum
Organizations: Cornell Tech New York, NY 10044, USA
Abstract
Information handling practices of LLM agents are broadly misaligned with the contextual privacy expectations of their users. Contextual Integrity (CI) provides a principled framework, defining privacy as the appropriate flow of information within context-relative norms. However, existing approaches either double inference cost via supervisor-assistant architectures, or fine-tune on narrow task-specific data. We propose extracting normative simulacra (structured representations of norms and information flows) from fiction novels and using them to fine-tune LLMs via supervised learning followed by GRPO reinforcement learning. Our composite reward function combines programmatic signals, including task clarity (subsuming schema validity, construct discrimination, and extraction confidence), structural completeness, internal consistency, and context identification, with an LLM judge that evaluates whether the model's privacy reasoning is grounded in the held-out normative universe of the source text. To mitigate overfitting, we introduce per-completion contrastive scoring: each completion is evaluated against both the correct normative universe and a randomly selected wrong one, teaching the model to condition on context rather than memorize source-specific norms. We evaluate on five CI-aligned benchmarks spanning distinct societal contexts and ablate the contributions of RL and normative grounding. Across seven models, SFT introduces a conservative prior toward restricting information flow, improving recognition of privacy-relevant situations but not the correctness of privacy judgments. GRPO with normative grounding achieves the highest score on a law compliance benchmark and strongest correlation with crowdsourced human privacy expectations, demonstrating that fiction-derived normative simulacra can teach contextual privacy reasoning that transfers to real-world domains.
AI agents acting on behalf of users are constantly making decisions, and for users to trust their agents, those decisions must align with what they actually want. Privacy is an important alignment problem for agents: every message, post, or tool call an agent makes is a contextual judgment about what is appropriate to share, with whom, and under which conditions. Because such judgments depend on social expectations and norms, human judgment does not merely label privacy violations but also helps define them. While existing work relies on unreliable proxies for both training and evaluation, we place human judgment at the center of agentic privacy alignment. We introduce PrivacyAlign, a dataset of 1,350 samples with 3,516 detailed annotations from 599 unique annotators across diverse scenarios where current LLMs actually leak, and use it to ground both alignment training and automated evaluation in human privacy norms. Building on these annotations, we first show that conditioning LLM judges on human annotations and explanations for reference responses to the same prompt makes their judgments more reliable. We then introduce annotation-conditioned reward modeling, which uses these annotations to score new responses during RL, and show that small open-weight agents trained with this reward better align with human privacy norms, with strong gains on PrivacyAlign and existing privacy benchmarks for agents.
Large language models (LLMs) are increasingly used to simulate human behavior, but their ability to simulate individual privacy decisions is not well understood. In this paper, we address the problem of evaluating whether a core set of user persona attributes can drive LLMs to simulate individual-level privacy behavior. We introduce PrivacySIM, an evaluation suite that benchmarks LLM simulation of user privacy behavior against the ground-truth responses of 1,000 users. These users are drawn from five published user studies on privacy spanning LLM healthcare consultations, conversational agents, and chatbots. Drawing on these user studies, we hypothesize three persona facets as plausible predictors of privacy decision-making: demographics, previous experiences, and stated privacy attitudes. We condition nine frontier LLMs on subsets of these three facets and measure how often each model's response to a data-sharing scenario matches the user's actual response. Our findings show that (1) privacy persona conditioning consistently improves simulation quality over no-persona conditioning, but even the strongest model (40.4% accuracy) remains far from faithfully simulating individual privacy decisions. (2) A user's stated privacy attitudes alone may not be the best predictor because they often diverge from the user's actual privacy behavior. (3) Users with high AI/chatbot experience but low stated privacy attitudes are the most challenging to simulate. PrivacySIM is a first step toward understanding and improving the capabilities of LLMs to simulate user privacy decisions. We release PrivacySIM to enable further evaluation of LLM privacy simulation.
Contextual Integrity (CI) defines privacy not merely as keeping information hidden, but as governing information flows according to the norms of a given context. As large language models are increasingly deployed as personal agents handling sensitive workflows, adhering to CI becomes critical. However, even frontier models remain unreliable in making disclosure decisions, and existing mitigation strategies often degrade underlying task performance. To overcome this privacy-utility trade-off, we propose SELFCI, a complementary self-distillation framework that decouples information suppression from task resolution. SELFCI jointly optimizes two independent reverse KL divergences over distinct teacher distributions derived from feedback: one encourages preserving task-relevant information for utility, while the other enforces minimal and appropriate disclosure. This complementary formulation induces a Product-of-Experts (PoE) target, aligning the policy with the intersection of capability and privacy requirements. Empirical evaluations demonstrate that SELFCI, without relying on costly external supervision, consistently outperforms competitive baselines such as online reinforcement learning algorithms (e.g., GRPO). These trends further extend to out-of-domain settings involving agentic workflows and accumulated private context, suggesting that SELFCI provides a practical path toward CI alignment.