Privacy-Preserving Large Language Models: Mechanisms, Applications, and Future Directions

Abstract: The rapid advancement of LLMs has revolutionized natural language processing, enabling applications in diverse domains such as healthcare, finance and education. However, the growing reliance on extensive data for training and inference has raised significant privacy concerns, ranging from data leakage to adversarial attacks. This survey comprehensively explores the landscape of privacy-preserving mechanisms tailored for LLMs, including differential privacy, federated learning, cryptographic protocols, and trusted execution environments. We examine their efficacy in addressing key privacy challenges, such as membership inference and model inversion attacks, while balancing trade-offs between privacy and model utility. Furthermore, we analyze privacy-preserving applications of LLMs in privacy-sensitive domains, highlighting successful implementations and inherent limitations. Finally, this survey identifies emerging research directions, emphasizing the need for novel frameworks that integrate privacy by design into the lifecycle of LLMs. By synthesizing state-of-the-art approaches and future trends, this paper provides a foundation for developing robust, privacy-preserving LLMs that safeguard sensitive information without compromising performance.