Privacy-Utility Tradeoff

Firms collect vast amounts of behavioral and geographical data on individuals. While behavioral data captures an individual's digital footprint, geographical data reflects their physical footprint. Given the significant privacy risks associated with combining these data sources, it is crucial to understand their respective value and whether they act as complements or substitutes in achieving firms' business objectives. In this paper, we combine economic theory, machine learning, and causal inference to quantify the value of geographical data, the extent to which behavioral data can substitute for it, and the mechanisms through which it benefits firms. Using data from a leading in-app advertising platform in a large Asian country, we document that geographical data is most valuable in the early cold-start stage, when behavioral histories are limited. In this stage, geographical data complements behavioral data, improving targeting performance by almost 20%. As users accumulate richer behavioral histories, however, the role of geographical data shifts: it becomes largely substitutable, as behavioral data alone captures the relevant heterogeneity. These results highlight a central privacy-utility trade-off in ad personalization and inform managerial decisions about when location tracking creates value.

We present STAMP (Selective Task-Aware Mechanism for Text Privacy), a new framework for task-aware text privatization that achieves an improved privacy-utility trade-off. STAMP selectively allocates privacy budgets across tokens by jointly considering (i) each token's importance to the downstream task (as measured via a task- or query-specific representation), and (ii) its privacy sensitivity (e.g., names, dates, identifiers). This token-level partitioning enables fine-grained, group-wise control over the level of noise applied to different parts of the input, balancing privacy protection with task relevance. To privatize individual token embeddings, we introduce the polar mechanism, which perturbs only the direction of embeddings on the unit sphere while preserving their magnitude. Decoding is performed via cosine nearest-neighbor search, aligning the perturbation geometry with the decoding geometry. Unlike isotropic noise mechanisms, the polar mechanism maintains semantic neighborhoods in the embedding space and better preserves downstream utility. Experimental evaluations on SQuAD, Yelp, and AG News datasets demonstrate that STAMP, when combined with the normalized polar mechanism, consistently achieves superior privacy-utility trade-offs across varying per-token privacy budgets.

The rapid adoption of generative AI (GenAI) chatbots has reshaped access to sexual and reproductive health (SRH) information, particularly following the overturning of Roe v. Wade, as individuals assigned female at birth increasingly turn to online sources. However, existing research remains largely model-centered, paying limited attention to user privacy and safety. We conducted semi-structured interviews with 18 U.S.-based participants from both restrictive and non-restrictive states who had used GenAI chatbots to seek SRH information. Adoption was influenced by perceived utility, usability, credibility, accessibility, and anthropomorphism, and many participants disclosed sensitive personal SRH details. Participants identified multiple privacy risks, including excessive data collection, government surveillance, profiling, model training, and data commodification. While most participants accepted these risks in exchange for perceived utility, abortion-related queries elicited heightened safety concerns. Few participants employed protective strategies beyond minimizing disclosures or deleting data. Based on these findings, we offer design and policy recommendations, such as health-specific features and stronger moderation practices, to enhance privacy and safety in GenAI-supported SRH information seeking.

Data valuation methods quantify how individual training examples contribute to a model's behavior, and are increasingly used for dataset curation, auditing, and emerging data markets. As these techniques become operational, they raise serious privacy concerns: valuation scores can reveal whether a person's data was included in training, whether it was unusually influential, or what sensitive patterns exist in proprietary datasets. This motivates the study of privacy-preserving data valuation. However, privacy is fundamentally in tension with valuation utility under differential privacy (DP). DP requires outputs to be insensitive to any single record, while valuation methods are explicitly designed to measure per-record influence. As a result, naive privatization often destroys the fine-grained distinctions needed to rank or attribute value, particularly in heterogeneous datasets where rare examples exert outsized effects. In this work, we analyze the feasibility of DP-compatible data valuation. We identify the core algorithmic primitives across common valuation frameworks that induce prohibitive sensitivity, explaining why straightforward DP mechanisms fail. We further derive design principles for more privacy-amenable valuation procedures and empirically characterize how privacy constraints degrade ranking fidelity across representative methods and datasets. Our results clarify the limits of current approaches and provide a foundation for developing valuation methods that remain useful under rigorous privacy guarantees.

While defenses for structured PII are mature, Large Language Models (LLMs) pose a new threat: Semantic Sensitive Information (SemSI), where models infer sensitive identity attributes, generate reputation-harmful content, or hallucinate potentially wrong information. The capacity of LLMs to self-regulate these complex, context-dependent sensitive information leaks without destroying utility remains an open scientific question. To address this, we introduce SemSIEdit, an inference-time framework where an agentic "Editor" iteratively critiques and rewrites sensitive spans to preserve narrative flow rather than simply refusing to answer. Our analysis reveals a Privacy-Utility Pareto Frontier, where this agentic rewriting reduces leakage by 34.6% across all three SemSI categories while incurring a marginal utility loss of 9.8%. We also uncover a Scale-Dependent Safety Divergence: large reasoning models (e.g., GPT-5) achieve safety through constructive expansion (adding nuance), whereas capacity-constrained models revert to destructive truncation (deleting text). Finally, we identify a Reasoning Paradox: while inference-time reasoning increases baseline risk by enabling the model to make deeper sensitive inferences, it simultaneously empowers the defense to execute safe rewrites.

Anonymizing textual documents is a highly context-sensitive problem: the appropriate balance between privacy protection and utility preservation varies with the data domain, privacy objectives, and downstream application. However, existing anonymization methods rely on static, manually designed strategies that lack the flexibility to adjust to diverse requirements and often fail to generalize across domains. We introduce adaptive text anonymization, a new task formulation in which anonymization strategies are automatically adapted to specific privacy-utility requirements. We propose a framework for task-specific prompt optimization that automatically constructs anonymization instructions for language models, enabling adaptation to different privacy goals, domains, and downstream usage patterns. To evaluate our approach, we present a benchmark spanning five datasets with diverse domains, privacy constraints, and utility objectives. Across all evaluated settings, our framework consistently achieves a better privacy-utility trade-off than existing baselines, while remaining computationally efficient and effective on open-source language models, with performance comparable to larger closed-source models. Additionally, we show that our method can discover novel anonymization strategies that explore different points along the privacy-utility trade-off frontier.

Privacy preserving machine learning deployments in sensitive deep learning applications; from medical imaging to autonomous systems; increasingly require combining multiple techniques. Yet, practitioners lack systematic guidance to assess the synergistic and non-additive interactions of these hybrid configurations, relying instead on isolated technique analysis that misses critical system level interactions. We introduce PrivacyBench, a benchmarking framework that reveals striking failures in privacy technique combinations with severe deployment implications. Through systematic evaluation across ResNet18 and ViT models on medical datasets, we uncover that FL + DP combinations exhibit severe convergence failure, with accuracy dropping from 98% to 13% while compute costs and energy consumption substantially increase. In contrast, FL + SMPC maintains near-baseline performance with modest overhead. Our framework provides the first systematic platform for evaluating privacy-utility-cost trade-offs through automated YAML configuration, resource monitoring, and reproducible experimental protocols. PrivacyBench enables practitioners to identify problematic technique interactions before deployment, moving privacy-preserving computer vision from ad-hoc evaluation toward principled systems design. These findings demonstrate that privacy techniques cannot be composed arbitrarily and provide critical guidance for robust deployment in resource-constrained environments.

We consider the privacy amplification properties of a sampling scheme in which a user's data isused in $k$ steps chosen randomly and uniformly from a sequence (or set) of $t$ steps. This sampling scheme has been recently applied in the context of differentially private optimization (Chua et al., 2024a; Choquette-Choo et al., 2025) and communication-efficient high-dimensional private aggregation (Asi et al., 2026), where it was shown to have utility advantages over the standard Poisson sampling. Theoretical analyses of this sampling scheme (Feldman & Shenfeld, 2025; Dong et al., 2025) lead to bounds that are close to those of Poisson sampling, yet still have two significant shortcomings. First, in many practical settings, the resulting privacy parameters are not tight due to the approximation steps in the analysis. Second, the computed parameters are either the hockey stick or Renyi divergence, both of which introduce overheads when used in privacy loss accounting. In this work, we demonstrate that the privacy loss distribution (PLD) of random allocation applied to any differentially private algorithm can be computed efficiently. When applied to the Gaussian mechanism, our results demonstrate that the privacy-utility trade-off for random allocation is at least as good as that of Poisson subsampling. In particular, random allocation is better suited for training via DP-SGD. To support these computations, our work develops new tools for general privacy loss accounting based on a notion of PLD realization. This notion allows us to extend accurate privacy loss accounting to subsampling which previously required manual noise-mechanism-specific analysis.

Differential privacy limits how much each training image can influence a medical imaging model but lowers its diagnostic accuracy. Pretrained weights reduce this loss. It is unknown whether the pretraining objective or domain improves accuracy more. Here we train chest radiograph classifiers under differential privacy from five starting points on 591,884 radiographs from five datasets. We show that supervised pretraining on chest radiographs ranks first in 24 of 25 combinations of dataset and privacy setting. Measured by the area under the receiver operating characteristic curve, its lead over supervised pretraining on natural images is 2.6% without privacy and 15.3% at the strictest budget. From that starting point, changing the domain improves this area 2.2 to 3.7 times more than changing the objective. Private pretraining on chest radiographs lowers this area by about 5% under privacy but outperforms the three starting points without patient data at the strictest budget. Under privacy, supervised chest radiograph pretraining leads in the worst-performing demographic subgroup.

In human-centric Cyber-Physical Systems (CPS), personalized Deep Reinforcement Learning (DRL) agents must share fine-grained control actions with cloud services, exposing sensitive private states to inference attacks by honest-but-curious adversaries. Static privacy models fail to address the dynamic nature of human interactions. This paper introduces PEARL (Personalized Early-exit Adaptive Reinforcement Learning), a novel framework that addresses this challenge through structural privacy control rather than data perturbation. PEARL deploys a dual-path Early-Exit Deep Q-Network (EE-DQN) at the edge, using Mutual Information (MI) between private states and observable actions to train per-branch binary labels: Utility Confidence Labels (UCL), verifying action quality, and Privacy Confidence Labels (PCL), verifying MI leakage remains below a user-defined threshold. At inference, PEARL selects the shallowest exit branch satisfying both UCL and PCL, structurally limiting shared action descriptive power without noise injection. An MI-based feedback loop tracks behavioral drift and triggers retraining when privacy-utility profiles shift, ensuring long-term robustness. Validated on a personalized smart-home HVAC system and a VR smart classroom, PEARL reduces adversarial state-inference accuracy by 25.67% on average with a controlled 10-16% utility cost, establishing a practical, dynamically enforceable privacy-utility tradeoff.

The pandemic in 2020 and 2021 had enormous economic and societal consequences, and studies show that contact tracing algorithms can be key in the early containment of the virus. While large strides have been made towards more effective contact tracing algorithms, we argue that privacy concerns currently hold deployment back. The essence of a contact tracing algorithm constitutes the communication of a risk score. Yet, it is precisely the communication and release of this score to a user that an adversary can leverage to gauge the private health status of an individual. We pinpoint a realistic attack scenario and propose a contact tracing algorithm with differential privacy guarantees against this attack. The algorithm is tested on the two most widely used agent-based COVID19 simulators and demonstrates superior performance in a wide range of settings. Especially for realistic test scenarios and while releasing each risk score with epsilon=1 differential privacy, we achieve a two to ten-fold reduction in the infection rate of the virus. To the best of our knowledge, this presents the first contact tracing algorithm with differential privacy guarantees when revealing risk scores for COVID19.