Evaluating the Efficacy of Large Language Models for Generating Fine-Grained Visual Privacy Policies in Homes

Abstract: The proliferation of visual sensors in smart home environments, particularly through wearable devices like smart glasses, introduces profound privacy challenges. Existing privacy controls are often static and coarse-grained, failing to accommodate the dynamic and socially nuanced nature of home environments. This paper investigates the viability of using LLMs as the core of a dynamic and adaptive privacy policy engine. We propose a conceptual framework where visual data is classified using a multi-dimensional schema that considers data sensitivity, spatial context, and social presence. An LLM then reasons over this contextual information to enforce fine-grained privacy rules, such as selective object obfuscation, in real-time. Through a comparative evaluation of state-of-the-art Vision LLMs (including GPT-4o and the Qwen-VL series) in simulated home settings , our findings show the feasibility of this approach. The LLM-based engine achieved a top machine-evaluated appropriateness score of 3.99 out of 5, and the policies generated by the models received a top human-evaluated score of 4.00 out of 5.