Autonomy Reshapes How Personalization Affects Privacy Concerns and Trust in LLM Agents

Abstract

LLM agents require personal information for personalization in order to effectively act on users' behalf, but this raises privacy concerns that can discourage data sharing, limiting both the autonomy levels at which agents can operate and the effectiveness of personalization. Yet the expanded design space of agent autonomy also presents opportunities to shape these effects, which remain underexplored. We conducted a $3\times3$ between-subjects experiment ($N=450$) to study how agent autonomy level influences personalization's effects on users' privacy concerns, trust, and willingness to use, as well as the underlying psychological processes. We find that risk-contingent autonomy, where the agent delegates control back to users upon detecting potential privacy leakage, improves users' perceived control. This in turn attenuates personalization's adverse effects: privacy concerns rise less and trust declines less. Our results suggest that designing $\textbf{agent's autonomy}$ that supports $\textbf{human autonomy}$ (both perceived control and oversight effectiveness) helps users benefit from personalization without being deterred by growing privacy concerns. This positions aligning decision authority between users and agents ($\textbf{autonomy alignment}$) as an important opportunity and challenge for trustworthy human-agent interaction.