PAPC: Platform Mediation for Privacy-Propagation Externalities in AI-Mediated Workflows

In LLM agent pipelines, prompt privacy risk propagates beyond a single model call: raw user content enters retrieval queries, memory writes, tool arguments, OCR-derived text, and logs, and every downstream copy inherits what the first write contained. Existing de-identification pipelines protect document boundaries but not this cross-stage surface. We present BodhiPromptShield, a policy-aware mediation layer that detects sensitive spans before they propagate, replaces each with a typed placeholder, a semantic abstraction, or a secure symbolic token under a configured policy, and defers restoration to authorized execution boundaries. We evaluate it under one protocol against Presidio, Casper-style sanitization, an LLM sanitizer, and transformer and learned detectors, on 300 AI4Privacy documents, 493 PrivacyLens trajectories, 200 PrivacyLens tasks scored by that benchmark's own judge, and AgentDojo tasks under injection. Three findings result. Identifier propagation is controllable: residual exposure falls to 7.4% on AI4Privacy and 1.8% on PrivacyLens, and exact identifiers in an agent's final action fall from 13.7% to 2.1-3.1%. Restoration timing governs what every stage upstream of the authorized boundary sees: deferring it leaves 1.6% of protected values readable in the released context against 51.0%, and 2.7% against 4.8% in what the agent emits, for 0.11 helpfulness points. Measuring factual disclosure is harder: a word-overlap metric and an LLM judge both report that mediation leaves facts intact, and both disagree with blind human annotation (kappa = 0.25 and 0.09). The human labels reverse that: inferability falls from 100% to 24-53% under mediation, so semantic-leakage measures need human validation before they are trusted. These are systems results on English text with open-weight models, not formal guarantees.

Privacy evaluations of tool-using LLM agents often inspect a designated action, final response, or attacker report. These local proxies can miss unauthorized exposure elsewhere in a multi-step session and lack common ground truth across outlets, reports, and tool paths. We introduce privacy exposure displacement, the mismatch between a local evaluation proxy and target-grounded session exposure, and ASLEval, an authorization-aware framework that pre-registers a hidden target set, measures all declared visible exits, and reserves internal traces for diagnosis. Across multiple enterprise-style environments and independently implemented runtimes, we observe three recurring patterns. An expected-outlet-only view misses 46.9% of exposure recovered by the visible-exit union; attacker self-reports combine omissions with high false discovery; and schema-aligned internal evidence usually precedes visible exposure at the request/probe level. Reducing model-visible returns changes this path but can eliminate normal-task success. Independent human review supports the adjudication pipeline while identifying harder console and candidate cases. These findings motivate benchmarks that declare the complete visible boundary, ground claims in pre-specified targets and authorization, and report privacy together with task utility.

As LLM agents evolve from single-user assistants into shared organizational infrastructure, new privacy risks emerge: inappropriate information may not only be exposed through outputs for external recipients, but also internally across users through inter-agent messages, shared memory and agents. These data spillage risks are not captured by existing privacy benchmarks grounded in contextual integrity (CI) as they focus primarily on either single-user settings or interactions between independently owned agents. We introducePiSAs (Privacy in Shared Agentic systems), a benchmark for assessing unintentional leaks with dual CI annotations: whether an information is appropriate for the task, and which users may legitimately access it. This enables direct measurement of cross-user spillage across agentic system components and interfaces, such as outputs, inter-agent communication, and memory. PiSAsis system-agnostic and supports evaluation across different agent topologies and memory regimes. We find that, although system design improves CI compliance, results are bottlenecked by incorrect LLM judgment calls: even state-of-the-art models fail to reliably filter inappropriate content or restrict transmission to authorized users. Our findings underscore the need for privacy-preserving strategies, beyond those studied in this work.