Privacy Leakage Overshadowed by Views of AI: A Study on Human Oversight of Privacy in Language Model Agent

Abstract: LLM (LM) agents that act on users' behalf for personal tasks (e.g., replying emails) can boost productivity, but are also susceptible to unintended privacy leakage risks. We present the first study on people's capacity to oversee the privacy implications of the LM agents. By conducting a task-based survey (N=300), we investigate how people react to and assess the response generated by LM agents for asynchronous interpersonal communication tasks, compared with a response they wrote. We found that people may favor the agent response with more privacy leakage over the response they drafted or consider both good, leading to an increased harmful disclosure from 15.7% to 55.0%. We further identified six privacy profiles to characterize distinct patterns of concerns, trust, and privacy preferences in LM agents. Our findings shed light on designing agentic systems that enable privacy-preserving interactions and achieve bidirectional alignment on privacy preferences to help users calibrate trust.