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In this paper, we aim to protect user privacy via a user-side mechanism that transforms sensitive information in a user prompt, while preserving enough information to elicit a useful response from the chatbot. This approach faces an inherent tradeoff between protecting privacy (i.e., avoiding profiling) and preserving utility (i.e., getting personalized and task-specific responses). To that end, we consider, evaluate, and compare four different obfuscation actions, namely redaction, abstraction, replacement, and a novel noising/denoising scheme that we introduce. Additional novel insights include: utilizing a data type taxonomy to both identify and obfuscate sensitive information and explicitly taking into account the utility of chat r","title":"PromptPET: Privacy-Utility Optimized Prompt Obfuscation","url":"https://arxiv.org/abs/2607.02932","vendor":"arxiv_cs_ai"},"summary":"arXiv:2607.02932v1 Announce Type: cross \nAbstract: Privacy is an important challenge when users interact with AI chatbots, since users may share sensitive information, explicitly or implicitly, and AI chatbots can use this information for user profiling. In this paper, we aim to protect user privacy via a user-side mechanism that transforms sensitive information in a user prompt, while preserving enough information to elicit a useful response from the chatbot. This approach faces an inherent tradeoff between protecting privacy (i.e., avoiding profiling) and preserving utility (i.e., getting personalized and task-specific responses). 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