AI Agents That Understand Your Privacy Boundaries

Author: Denis Avetisyan


New research explores how to build personal AI assistants that respect individual preferences by reasoning about privacy implications.

A personal agent navigating task completion on behalf of a user must assess the appropriateness of sharing user data with third parties, a judgment informed by a historical knowledge base of prior data-sharing decisions-effectively building a precedent-based reasoning system to manage evolving privacy expectations.
A personal agent navigating task completion on behalf of a user must assess the appropriateness of sharing user data with third parties, a judgment informed by a historical knowledge base of prior data-sharing decisions-effectively building a precedent-based reasoning system to manage evolving privacy expectations.

A novel framework, ARIEL, leverages logical entailment and ontologies to personalize privacy judgments within large language model-powered agents.

While increasingly capable AI agents promise to automate tasks on our behalf, ensuring they respect individual privacy preferences remains a significant challenge. This paper, ‘Personalizing Agent Privacy Decisions via Logical Entailment’, addresses this by introducing ARIEL, a novel framework that combines the reasoning power of large language models with the rigor of rule-based logical entailment. Our findings demonstrate that ARIEL substantially improves personalized privacy judgments-reducing error by 39.1%-by grounding decisions in prior user preferences and providing interpretable reasoning traces. Could this approach unlock truly trustworthy and personalized AI agents capable of navigating the complexities of data privacy?


The Illusion of Control: Personal AI and the Privacy Paradox

The emergence of personal AI agents signals a shift towards proactive, automated assistance in daily life. These sophisticated programs, ranging from virtual assistants to personalized recommendation systems, are no longer simply responding to commands but are learning user preferences and anticipating needs. This proactive capability promises significant convenience, automating tasks like scheduling, communication, and information gathering, thereby freeing up valuable time and cognitive resources. The increasing prevalence of these agents is fueled by advances in machine learning and natural language processing, alongside the growing accessibility of powerful computing resources, making personalized automation a reality for an expanding segment of the population. Early applications demonstrate potential in areas such as healthcare, education, and entertainment, suggesting a future where AI-powered agents are integral to managing and enhancing various aspects of human experience.

The functionality of personal AI agents hinges on access to deeply sensitive user data, creating a substantial and multifaceted privacy risk. These agents, designed to anticipate needs and automate tasks, require information ranging from location and communication patterns to financial transactions and health records. This constant data collection expands the potential attack surface for malicious actors, increasing the likelihood of breaches and identity theft. Beyond security concerns, the aggregation of such personal data raises questions about potential misuse, profiling, and discriminatory practices. While the convenience offered by these agents is appealing, individuals face a trade-off between personalized experiences and the erosion of privacy, demanding careful consideration of data governance and security protocols.

Conventional privacy policies, often lengthy and generalized, struggle to keep pace with the dynamic data flows of personal AI agents. These policies typically present an “all-or-nothing” consent model, failing to account for the specific contexts in which an AI utilizes information – a grocery list shared for meal planning differs vastly from the same data informing targeted advertisements. The static nature of these agreements means users often unknowingly consent to data usage beyond their immediate expectations, creating a disconnect between stated policies and actual practice. This mismatch is exacerbated by the continuous learning capabilities of AI, where data initially collected for one purpose can be repurposed for others without renewed, granular consent. Consequently, individuals face a significant challenge in understanding and controlling how their personal information is leveraged by these increasingly sophisticated agents, highlighting a critical need for more flexible and transparent privacy frameworks.

ARIEL leverages a large language model to build user-specific privacy ontologies and determine if new requests are entailed by prior ones, escalating to the user only when no relevant precedent exists.
ARIEL leverages a large language model to build user-specific privacy ontologies and determine if new requests are entailed by prior ones, escalating to the user only when no relevant precedent exists.

Data’s True Hierarchy: Formalizing Sensitivity

Personalized privacy necessitates a formalized understanding of data sensitivity, moving beyond binary classifications of “private” or “public”. This involves explicitly representing knowledge about various data attributes and their associated risks. A formal representation enables systems to understand why certain data is sensitive, not just that it is, facilitating nuanced privacy decisions. This approach allows for the categorization of data based on multiple factors, including the data type, the context of collection, and potential re-identification risks. The benefit of this formalized knowledge is a move towards a more granular and adaptable privacy framework capable of addressing diverse user preferences and evolving data landscapes.

An Ontology is utilized to model a Data Sensitivity Hierarchy, enabling the categorization of data types based on associated risk levels. This involves defining concepts – such as Personally Identifiable Information (PII), Protected Health Information (PHI), or financial data – and establishing relationships between them to create a structured classification. Data types are then assigned to specific levels within the hierarchy, reflecting the potential harm from unauthorized disclosure or misuse. This formalized structure allows for the consistent and automated assessment of data sensitivity, moving beyond simple keyword-based identification to a more nuanced understanding of data context and inherent risk.

Traditional rule-based privacy assessment systems often rely on broad classifications and predetermined policies, leading to potential over- or under-protection of data. In contrast, utilizing a structured knowledge representation, such as an ontology, enables a more precise evaluation of data sensitivity. This approach moves beyond simple categorization by explicitly defining relationships between data types and associated risk levels. Consequently, privacy assessments can be conducted at a granular level, considering the specific context and attributes of each data element, rather than applying uniform rules to entire datasets. This allows for nuanced policies that appropriately balance privacy protection with data utility, minimizing both false positives and false negatives in risk identification.

An ablation study on the Chain-of-Thought (CoT) prompting strategy reveals it has a negligible impact on privacy judgments when using Gemini 2.5 Pro on the SPA dataset, as indicated by consistent F1-scores for both appropriate and inappropriate classifications.
An ablation study on the Chain-of-Thought (CoT) prompting strategy reveals it has a negligible impact on privacy judgments when using Gemini 2.5 Pro on the SPA dataset, as indicated by consistent F1-scores for both appropriate and inappropriate classifications.

ARIEL: A Logic-Based Framework for Personalized Privacy

ARIEL is a privacy framework designed to deliver personalized judgments by integrating three core components: Logical Reasoning, Entailment, and Ontologies. The system utilizes ontologies to represent user preferences and data sensitivity attributes in a structured, machine-readable format. Logical Reasoning then applies these ontologies to define privacy policies, while Entailment determines whether a specific data sharing request adheres to those policies. This combination allows ARIEL to move beyond simple rule-based systems and evaluate privacy concerns based on the logical relationships between data, context, and user-defined preferences, resulting in more nuanced and accurate privacy assessments.

ARIEL’s core functionality centers on utilizing logical entailment to evaluate data sharing permissibility. The framework assesses whether a proposed data disclosure logically follows from a user’s stated privacy preferences and the identified sensitivity level of the data in question. This process involves representing both preferences and data characteristics as logical statements, then employing an entailment engine to determine if the disclosure statement is logically supported by the user’s rules and the data’s attributes. Specifically, if a user defines a preference stating “Do not share health data with advertising platforms,” and a data element is classified as health data intended for an advertising platform, the entailment engine would confirm that sharing this data is not permissible according to the user’s defined policies.

ARIEL’s reliance on logical principles for privacy decision-making facilitates both transparency and accountability by providing a clear, auditable basis for each judgment. This contrasts with approaches utilizing Large Language Models (LLMs), which often operate as “black boxes” with less discernible reasoning processes. Empirical evaluation demonstrates a 39.1% reduction in error rate when ARIEL predicts appropriate privacy judgments compared to LLM-based reasoning. This improved accuracy is a direct result of ARIEL’s deterministic evaluation of user preferences and data sensitivity against a formalized logical framework, minimizing ambiguity and subjective interpretation inherent in LLM outputs.

ARIEL demonstrates greater robustness than ICL w (Undet) across varying numbers of prior user requests on the SPA dataset, as evidenced by consistently higher F1-scores for both appropriate and inappropriate judgments.
ARIEL demonstrates greater robustness than ICL w (Undet) across varying numbers of prior user requests on the SPA dataset, as evidenced by consistently higher F1-scores for both appropriate and inappropriate judgments.

The Illusion of Control: Validation and Future Directions

The efficacy of this framework hinges on robust validation, achieved through analysis of two distinct datasets: the SPPA Dataset and the Education Dataset. Both resources are specifically curated collections of user privacy preferences, providing a critical foundation for assessing the system’s ability to accurately interpret and categorize sensitive data handling. The SPPA Dataset offers insights into general privacy attitudes, while the Education Dataset focuses on preferences within an educational technology context, ensuring the framework’s adaptability across different domains. By testing against these diverse, preference-rich datasets, researchers confirmed the system’s capacity to discern appropriate data usage, laying the groundwork for improved privacy-preserving technologies.

Rigorous evaluation using the SPPA and Education Datasets confirms ARIEL’s enhanced ability to accurately assess user privacy judgments. Comparative analysis against the ICL w (Undet) baseline, leveraging the Gemma 3 4B model, reveals a substantial performance increase. Specifically, ARIEL achieves a 13% improvement in F1 scores on the Education Dataset, indicating more precise identification of appropriate privacy settings, and an even greater 17% improvement on the SPPA Dataset. These results demonstrate ARIEL’s potential to significantly refine automated systems responsible for interpreting and upholding user privacy preferences, offering a more robust and reliable approach to data handling.

Continued development centers on broadening the scope of the underlying Ontology to encompass a more diverse spectrum of data types and contextual nuances, moving beyond the current focus. Researchers aim to implement mechanisms for dynamic adaptation, enabling the system to continuously refine its understanding of individual user preferences through ongoing interaction and data analysis. This iterative learning approach promises to enhance the precision of privacy judgments and ensure the framework remains relevant as data landscapes and user expectations evolve, ultimately fostering a more personalized and effective user experience.

The pursuit of personalized privacy, as detailed in this work concerning ARIEL, echoes a fundamental truth about complex systems. Every dependency, every rule encoded within the framework to align with user preferences, is a promise made to the past-a commitment to a specific interpretation of privacy at a given moment. Yet, as the system evolves, as user needs shift, these initial promises will inevitably require renegotiation. The architecture anticipates this; it doesn’t seek to control privacy, but to cultivate an ecosystem where judgements adapt through logical entailment. As Ada Lovelace observed, “The Analytical Engine has no pretensions whatever to originate anything.” This framework similarly acknowledges that it doesn’t dictate privacy, but rather facilitates a logical progression from user intent, recognizing that everything built will one day start fixing itself.

What Lies Ahead?

The pursuit of personalized privacy, as exemplified by frameworks like ARIEL, inevitably confronts a fundamental truth: preferences are not static declarations, but shifting sands. Ontologies offer the illusion of fixed meaning, yet the very act of codifying context risks ossifying it. The system’s ability to reason about entailment is a temporary reprieve – a snapshot of logical consistency destined to be eroded by the unpredictable currents of user behavior and evolving societal norms. Technologies change, dependencies remain.

The true challenge isn’t building more sophisticated reasoning engines, but accepting the inherent fragility of any attempt to ‘solve’ privacy. The focus will likely drift from precise logical alignment towards probabilistic approximations of user intent, trading interpretability for resilience. This is not a failure of technique, but an acknowledgment of the messy, contradictory nature of human desire. Architecture isn’t structure – it’s a compromise frozen in time.

Future iterations will almost certainly grapple with the tension between personalization and aggregation. The more finely tuned an agent becomes to an individual, the more vulnerable that individual becomes to profiling and manipulation. The system’s long-term viability will depend not on its technical prowess, but on its ability to navigate this ethical minefield – a task for which no algorithm can fully prepare it.


Original article: https://arxiv.org/pdf/2512.05065.pdf

Contact the author: https://www.linkedin.com/in/avetisyan/

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2025-12-07 14:26