AI Governance Library

Privacy and Data Protection Risks in Large Language Models (LLMs)

A structured guide to identifying and mitigating privacy risks in LLMs—covering data leakage, user inference, training data exposure, and strategies for auditability and control.
Privacy and Data Protection Risks in Large Language Models (LLMs)

🔍 Quick Summary

“Privacy and Data Protection Risks in Large Language Models (LLMs)” is a concise risk mapping tool published by the Future of Privacy Forum (FPF), aimed at helping technical, legal, and policy teams understand the unique privacy risks posed by LLMs. Unlike general AI ethics papers, it focuses specifically on how LLMs handle, retain, and potentially disclose personal data across use phases—from training to deployment. Its structure mirrors a data protection lifecycle, making it especially useful for organizations conducting DPIAs or privacy reviews. This is a practical companion for both product developers and privacy officers navigating the technical realities of generative AI.

📘 What’s Covered

Training Phase Risks – Covers use of personal data in pretraining and fine-tuning (e.g., web-scraped PII, lack of data minimization, copyright overlap).

Deployment Risks – Addresses input inference, memorization, unintended outputs, and developer access to prompts.

User Interaction Risks – Maps threats tied to model misuse, hallucinated identities, and failure to implement effective user controls.

Controls & Mitigations – Recommends layered mitigations (e.g., model editing, prompt filters, transparency tooling), tied to privacy principles like purpose limitation and data minimization.

Appendix A – Includes a privacy harms matrix, associating LLM behaviors with tangible individual risks (e.g., economic loss, reputational harm).

💡 Why It Matters

Many LLM deployments happen outside traditional data protection oversight, especially in enterprise and developer tooling contexts. This guide makes the privacy risks legible to legal and technical audiences alike, using plain language backed by meaningful technical examples. It’s also rare in that it moves past conceptual risk categories to offer specific behaviors to monitor—like prompt leakage, output inference, or covert data collection during user interactions. As LLM-based tools become embedded in productivity suites, public services, and analytics platforms, this resource helps bridge the legal-technical gap that often stalls risk mitigation efforts.

🧩 What’s Missing

  • Doesn’t benchmark or compare mitigation effectiveness across techniques
  • Limited guidance on regulatory expectations (e.g., GDPR, CCPA) or enforcement risks
  • No sector-specific scenarios (e.g., health, finance, education)
  • Lacks visuals or architecture diagrams to support implementation planning

Best For:

Privacy engineers, AI compliance leads, DPIA reviewers, and counsel advising on LLM integration in tools or services.

Source Details:

Future of Privacy Forum (FPF), Privacy and Data Protection Risks in Large Language Models (LLMs), 2024.

Thanks to FPF for translating abstract privacy theory into applied risk guidance for LLMs.

About the author
Jakub Szarmach

AI Governance Library

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