Designing Privacy Choice in Generative AI Chatbot Ecosystems

Lanjing Liu
Xinran Adeline Li
Yaxing Yao
2026

Abstract

Generative AI (GenAI) is evolving from standalone tools to interconnected ecosystems that integrate chatbots, cloud platforms, and
third-party services. While this ecosystem model enables personalization and extended services, it also introduces complex information flows and amplifies privacy risks. Existing solutions focus on
system-level protections, offering little support for users to make
meaningful privacy choices. To address this gap, we conducted two
vignette-based survey studies with 486 participants and a followup interview study with 16 participants. We also explored users’
needs and preferences for privacy choice design across both GenAI
personalization and data-sharing. Our results reveal paradoxical
patterns: participants sometimes trusted third-party ecosystems
more for personalization but perceived greater control in first-party
ecosystems when data was shared externally. We discuss design implications for privacy choice interfaces that enhance transparency,
control, and trust in GenAI ecosystems.
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