Local models now protect your privacy while still accessing powerful LLM capabilities
Chain small and large LLMs to get best performance while keeping data private
๐ Original Problem:
Users share sensitive personal information with proprietary LLMs during inference, raising privacy concerns. While local open-source models help with privacy, they perform worse than proprietary models.
๐ ๏ธ Solution in this Paper:
โข PAPILLON: A multi-stage pipeline where local models act as privacy-conscious proxies
โข Uses DSPy prompt optimization to find optimal prompts for privacy preservation
โข Two key components:
Prompt Creator: Generates privacy-preserving prompts
Information Aggregator: Combines responses while protecting PII
Created PUPA benchmark with 901 real-world user-LLM interactions containing PII
๐ก Key Insights:
โข Simple redaction significantly lowers LLM response quality
โข Privacy-conscious delegation can balance privacy and performance
โข Smaller local models can effectively leverage larger models while protecting privacy
โข Prompt optimization improves both quality and privacy metrics
๐ Results:
โข Maintains 85.5% response quality compared to proprietary models
โข Restricts privacy leakage to only 7.5%
โข Outperforms simple redaction approaches
โข Shows consistent improvement across different model sizes
PAPILLON uses a multi-stage pipeline with:
A Prompt Creator that generates privacy-preserving prompts
An Information Aggregator that combines responses
Uses prompt optimization with DSPy to find optimal prompts
The system aims to maintain high response quality while minimizing privacy leakage.
๐ How is privacy leakage measured?
The system uses:
Quality Preservation metric comparing outputs to proprietary model responses
Privacy Preservation metric measuring percentage of PII leaked
LLM judges and crowd-sourcing validation for robustness.



