Distilling Human-Aligned Privacy Sensitivity Assessment from Large Language Models

Abstract: Accurate privacy evaluation of textual data remains a critical challenge in privacy-preserving natural language processing. Recent work has shown that LLMs can serve as reliable privacy evaluators, achieving strong agreement with human judgments; however, their computational cost and impracticality for processing sensitive data at scale limit real-world deployment. We address this gap by distilling the privacy assessment capabilities of Mistral Large 3 (675B) into lightweight encoder models with as few as 150M parameters. Leveraging a large-scale dataset of privacy-annotated texts spanning 10 diverse domains, we train efficient classifiers that preserve strong agreement with human annotations while dramatically reducing computational requirements. We validate our approach on human-annotated test data and demonstrate its practical utility as an evaluation metric for de-identification systems.