POLAR-Bench: A Diagnostic Benchmark for Privacy-Utility Trade-offs in LLM Agents

LLM agents increasingly have access to private user data and act on the user's behalf when interacting with third-party systems. The user defines what may and must not be shared, and the agent must robustly follow that intent even when third-party systems behave adversarially. We introduce POLAR-Bench (Policy-aware adversarial Benchmark), in which a trusted model with a privacy policy and a task converses with a third-party model that adversarially probes for both task-relevant and protected attributes. Across 10 domains and 7,852 samples, we score privacy and utility by deterministic set-membership and vary privacy policy dimension and attack strategy along two orthogonal axes, producing...

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