Evaluating LLM Simulators as Differentially Private Data Generators
The paper evaluates LLM-based simulators for generating differentially private synthetic data, finding that while they show promise for utility, they suffer from significant distribution drift due to systematic LLM biases.
Abstract
More Like ThisLLM-based simulators offer a promising path for generating complex synthetic data where traditional differentially private (DP) methods struggle with high-dimensional user profiles. But can LLMs faithfully reproduce statistical distributions from DP-protected inputs? We evaluate this using PersonaLedger, an agentic financial simulator, seeded with DP synthetic personas derived from real user statistics. We find that PersonaLedger achieves promising fraud detection utility (AUC 0.70 at epsilon=1) but exhibits significant distribution drift due to systematic LLM biases--learned priors overriding input statistics for temporal and demographic features. These failure modes must be addressed before LLM-based methods can handle the richer user representations where they might otherwise excel.