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Privacy Collapse: Benign Fine-Tuning Can Break Contextual Privacy in Language Models (2026.acl-long)

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Challenge: Fine-tuning of frontier models can lead to privacy collapse, causing optimisation for helpfulness, exposure to user information, and debugging code printing internal variables.
Approach: They propose to fine-tune frontier models to adapt to specific domains and align with organizational workflows and user preferences.
Outcome: The proposed model fails to perform on safety and utility benchmarks while exhibiting severe privacy vulnerabilities.

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