Responsible AI
Differential Privacy and Privacy Budgets
Explain neighboring datasets, epsilon, delta, sensitivity, mechanisms, composition, DP-SGD, accounting, and practical governance.
By the end you can
- Explain why differential privacy bounds output-distribution change between neighboring datasets under explicit epsilon, delta, adjacency, composition, and implementation assumptions
- Distinguish De-identification, Differential privacy, and Access control
- Identify evidence that connects protected unit and adjacency to utility and communication
- Design a review that moves from define the protected unit to govern the budget
The same epsilon can protect different things
Differential privacy bounds how much the probability of released outputs can change when one protected unit is added or removed from the dataset. The guarantee is formal. Its meaning is not. That depends on adjacency, epsilon, delta, mechanism, composition, and how the thing was implemented. Two systems quoting the same epsilon can protect very different things once adjacency and composition are written down. Smaller epsilon generally means a stronger bound. Delta captures a small failure probability in approximate DP. Budgets compose across repeated releases.
In DP-SGD, per-example gradient clipping and calibrated noise combine with sampling and a privacy accountant. What a tighter budget costs is not a matter of opinion. It has been measured on the same data at several budgets. In 2016 Abadi and colleagues reported MNIST test-set accuracy of 90%, 95% and 97% at (0.5, 10^-5), (2, 10^-5) and (8, 10^-5)-differential privacy. The lot size was 600, and each layer's gradient norm was clipped at 4. On CIFAR-10 the same method reached 67%, 70% and 73% at ε = 2, 4 and 8 with δ = 10^-5. Those runs used a larger lot size, 2,000, and clipping values tried between 3 and 10. Two datasets, three budgets each. The accuracy moves with the budget every time.
Their own summary of that result is deliberately modest: “Our implementation and experiments demonstrate that we can train deep neural networks with non-convex objectives, under a modest privacy budget, and at a manageable cost in software complexity, training efficiency, and model quality.”
A modest budget and a manageable cost. Both quantified, neither claimed to be free.
Formality is not portability: unless adjacency, delta and composition are written down beside it, an epsilon is a number nobody outside the team can check.
Case
Noise calibrated to sensitivity, 2006
Earlier work already knew how to add noise to sums. The paper that defined differential privacy did something more general. It tied the amount of noise to a property of the function being computed.
That paper appeared in 2006, from Cynthia Dwork and three co-authors. Its abstract states the move in one sentence: “We extend the study to general functions f, proving that privacy can be preserved by calibrating the standard deviation of the noise according to the sensitivity of the function f.”
Sensitivity, in that sentence, is the amount any single argument to f can change its output. That is why the protected unit has to be defined before the noise can be set. The same paper characterised privacy as indistinguishability of transcripts.
This is the result the budget rests on. It is a statement about one function and one release. Everything about composition comes afterwards.
Case
The census that chose ε = 19.61 in public, and split it 17.14 to 2.47
The 2020 US decennial census was the first built on that definition: a TopDown algorithm for disclosure avoidance, with explicit privacy-loss accounting. What makes it worth studying is not that a budget existed. It is that the number was published, with a date and a named committee attached.
The production Disclosure Avoidance System settings for the redistricting (P.L. 94-171) data were announced on 9 June 2021, by the Census Bureau's Data Stewardship Executive Policy Committee. The total privacy-loss budget was ε = 19.61. That split into ε = 17.14 for the persons file and ε = 2.47 for the housing unit data. The National Academies' later review records the decision without ornament: “The U.S. Census Bureau adopted ε = 19.61 for the 2020 Redistricting File, 17.14 for the person tables and 2.47 for the housing unit tables.”
A committee met, chose 19.61, said so, and divided it between two files. The argument about accuracy has not stopped since. It could not have started without the number.
Epsilon is a policy choice about acceptable disclosure, not a technical constant.
Comparison
De-identification, Differential privacy, or Access control?
These three are routinely presented as alternatives to each other. They protect against different things, and two of them offer no numerical bound at all.
De-identification attempts to remove identifying information. It is context-dependent and vulnerable to linkage. It carries no universal numerical privacy bound, is often useful before other controls, and is not equivalent to differential privacy. Differential privacy bounds participation influence under a formal model. It supports composition and post-processing, and it requires explicit parameters and assumptions. It can reduce utility for small or complex data, and it does not prevent every harm or misuse. Access control limits who can obtain data or outputs. It is an essential operational safeguard, and it can be revoked and monitored. It does not bound information inside an authorized release, and it complements rather than replaces a formal budget.
The cost of confusing the first with the second has been measured by the agency that paid it. Thirty-four published tables were enough to rebuild the 2010 Census. Working from those aggregates alone, Abowd and colleagues reconstructed block, sex, age, race and ethnicity for the confidential person records: “Ninety-seven million person records (every resident in 70% of all census blocks) are exactly reconstructed with provable certainty using only public information.” Within the blocks reconstructed perfectly, the attack went further. It correctly inferred the actual census race and ethnicity responses of 3.4 million “vulnerable population uniques” — population-unique persons with nonmodal characteristics — with 95% accuracy. The bureau published the study in December 2023.
No one had released a microdata file. Thirty-four tables of aggregates were enough. That is what "no universal numerical bound" means in practice, and why the same bureau moved to a formal budget for 2020.
De-identification
Attempts to remove identifying information.
- Context-dependent and vulnerable to linkage
- No universal numerical privacy bound
- Often useful before other controls
- Not equivalent to differential privacy
Differential privacy
Bounds participation influence under a formal model.
- Supports composition and post-processing properties
- Requires explicit parameters and assumptions
- Can reduce utility for small or complex data
- Does not prevent every harm or misuse
Access control
Limits who can obtain data or outputs.
- Essential operational safeguard
- Does not bound information in an authorized release
- Can be revoked and monitored
- Complements rather than replaces DP
Example
Published per-donation epsilons, unpublished daily total
Apple states its budgets feature by feature and donation by donation. From its own Differential Privacy Overview: “For Lookup Hints, Apple uses a privacy budget with epsilon of 4, and limits user contributions to two donations per day. For emoji, Apple uses a privacy budget with epsilon of 4, and submits one donation per day. For QuickType, Apple uses a privacy budget with epsilon of 8, and submits two donations per day.” Health types carry epsilon 2, one donation per day.
Every one of those numbers is on the record. Their sum is not. In 2017 Tang and Korolova, with three co-authors, reverse-engineered the implementation in macOS Sierra 10.12. They found a per-datum loss of 1 or 2. They also found an overall permitted loss as high as 16 per day, across Emojis, New words, Deeplinks and Lookup Hints, with the budget renewed every day.
This is not a team that failed to run an accountant. It is a shipped deployment with published parameters. The quantity a person would actually want — what my participation costs me, across features, across days — was never stated.
- Undefined protection unit over time: the published epsilons of 4, 4, 8 and 2 are per feature and per donation. Nothing states what one person's participation is worth across features, or across a year of daily renewals.
- Missing cumulative budget: four per-donation figures are documented. No cumulative daily or lifetime epsilon or delta is.
- Composition: the same users donate to several features, and the macOS Sierra 10.12 study put the overall permitted loss as high as 16 per day, renewed every day. The composition, not the parameter, is where the exposure lives.
- Implementation risk: the per-datum loss of 1 or 2 had to be recovered by reverse-engineering. Clipping, sampling, floating point and accounting choices all affect the guarantee, and none of them is legible from the label.
- Communication failure: a stakeholder can read “epsilon of 4” and still be unable to say what a year of use costs. That is the label doing less work than it appears to.
Visual
A guarantee assembled from five decisions
A guarantee is assembled from five decisions. What counts as one unit — adjacency: record, person, device or group. How much that unit can move the result — sensitivity and clipping. How randomness enters — the mechanism. How the budget is tracked — accounting. And what it costs in utility.
The fourth looks like bookkeeping and is not. Take one identical computation from that 2016 DP-SGD work: lot size L = 0.01N, noise scale σ = 4, δ = 10^-5, and T = 10,000 steps. Under the authors' own moments accountant it was reported at ε ≈ 1.26. Under the strong composition theorem, ε ≈ 9.34. Same mechanism, same noise, same number of steps. Two composition analyses, two budgets. As the paper puts it: “In our work, we invent a stronger accounting method, which we call the moments accountant.”
1.26 and 9.34 are not a disagreement about how private the run was. They are the same run, analysed twice. An epsilon quoted without its accountant beside it cannot be compared with anyone else's.
- 1
Protected unit and adjacency
Define neighboring datasets: record, person, device, or group.
- 2
Sensitivity and clipping
Bound how much one unit can influence the computation.
- 3
Randomized mechanism
Add calibrated randomness to query, update, or release.
- 4
Privacy accounting
Track epsilon and delta across steps, models, and repeated releases.
- 5
Utility and communication
Measure task impact and explain the guarantee without absolute claims.
Key idea
Epsilon is not a privacy percentage
Epsilon is not a universal “privacy percentage.” Comparing budgets across systems is meaningless without adjacency, delta, sampling, number of releases, threat model and utility context. Differential privacy does not guarantee fairness, security, consent, purpose limitation or harmless outputs. A vendor can publish an epsilon of 4 for one feature and leave the daily total across features unstated. That is the difference between a documented parameter and a governed budget.
Group privacy and rare-population utility are where the bill arrives, and the size of the bill has been measured. On an imbalanced MNIST task, the non-private model reached 97% on the underrepresented class "8" against 99% on "2". The DP model reached 77% on "8" against 98% on "2". The well-represented class barely noticed. The small one lost most of what it had.
And it was not one unlucky configuration. Every setting of epsilon, clipping and noise that Bagdasaryan and colleagues tried, in a 2019 study of DP's disparate impact on model accuracy, gave the same result: “In all cases, the accuracy gap between the underrepresented and well-represented classes is at least 20% for the DP model vs. under 3% for the non-DP model.”
A budget can be perfectly defensible and still hand a small group results nobody should act on. The bound is not broken when that happens. Bounding participation influence was never a promise about equal accuracy.
Group privacy is where the bill arrives — 97% down to 77% on the underrepresented class while the well-represented one went 99% to 98%, and a gap of at least 20% at every setting tried.
Example
The budget ledger and the utility frontier
Start where the marketing does not. What exactly does this guarantee promise, and to whom? There is now a numbered public standard to review against, so the checklist need not be a house method.
NIST published SP 800-226, Guidelines for Evaluating Differential Privacy Guarantees, in final form in March 2025. The initial public draft had come out in December 2023. It was issued to fulfil one of NIST's assignments under the Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence. The final publication no longer cites that order.
It organises evaluation around a differential privacy pyramid. At the top sit the privacy parameters: ε, and the unit of privacy. In the middle, the algorithms — correctness, utility and bias. At the bottom, access control, trust models, side channels and data collection. And it refuses to let a reviewer stop at the top: “Evaluating any claim to differential privacy protection requires examining every component of the pyramid.”
- Privacy statement: write down the neighboring-dataset definition and what participation is protected. SP 800-226 places the unit of privacy at the top of the pyramid alongside ε itself, not in a footnote beneath it.
- Budget ledger: list every release that consumes privacy budget and its owner, and report the cumulative total rather than the per-release figure. A set of per-donation epsilons is not a budget until someone has added them up.
- Utility frontier: plot task and subgroup performance across several budgets. Utility and bias sit in the middle of the pyramid, and a gap of at least 20% on an underrepresented class should surface on that plot rather than in production.
- Implementation review: verify clipping, sampling, accountant, randomness and numeric behavior against the documented method. Treat the bottom of the pyramid — access control, trust models, side channels, data collection — as part of the claim, not a separate concern.
Steps
Work outward from the protected unit
Work outward from the protected unit to the budget that governs every future release.
First, define the protected unit. Choose adjacency from the privacy promise and the data relationship. Sensitivity is the amount any single argument can change the output, and there is no such quantity until the unit is fixed.
Second, bound the contribution: clipping, aggregation, sensitivity rules. The DP-SGD authors clipped each layer's gradient norm at 4 on MNIST and tried values between 3 and 10 on CIFAR-10. That is the shape of a decision, not a default.
Third, choose the mechanism and name the accountant. Document sampling, noise, epsilon, delta and composition. 1.26 and 9.34 came from the same run under two composition analyses.
Fourth, evaluate utility and disparity — task performance, rare cases, groups and operational thresholds — across several budgets, not one.
Fifth, govern the budget. Approve releases, track cumulative use, and communicate what remains. A named committee published 19.61, split it 17.14 and 2.47, and let the argument happen in the open.
1. Define the protected unit
Choose adjacency based on the privacy promise and data relationship.
2. Bound contribution
Set clipping, aggregation, and sensitivity rules.
3. Choose mechanism and accountant
Document sampling, noise, epsilon, delta, and composition.
4. Evaluate utility and disparity
Test task performance, rare cases, groups, and operational thresholds.
5. Govern the budget
Approve releases, track cumulative use, and communicate the remaining guarantee.
The operational conclusion — differential privacy
Privacy budget is spent rather than owned. So the accounting stays visible for as long as releases continue.
Four numbers from this lesson carry the whole argument. 19.61, chosen by a committee on 9 June 2021 and split 17.14 to 2.47, argued over ever since precisely because it was published. 1.26 against 9.34, one identical run under two accountants. 97 million records rebuilt from 34 tables, under the regime that came before. 97% falling to 77% for a class that was already small.
Set in advance the epsilon, utility or disparity result that would force the owner to redesign, restrict, remedy or retire the model. A class gap of at least 20% is a defensible trigger to write down. It is far easier to name before the release than after it.
Key takeaways
- Differential privacy is a formal bound on how participation changes output distributions — Dwork and three co-authors fixed it in 2006 by calibrating the noise to the sensitivity of the function.
- Adjacency defines whether the protected unit is a record, person, device, household or another entity. Apple's published epsilons — 4 for Lookup Hints, 4 for emoji, 8 for QuickType, 2 for Health types — are per feature and per donation, which is not per person.
- Epsilon and delta require context and should not be marketed as simple privacy percentages: the 2020 Census redistricting budget was a published policy decision, ε = 19.61 split 17.14 and 2.47, announced on 9 June 2021.
- Privacy loss composes across repeated training and releases. On macOS Sierra 10.12 the overall permitted loss ran as high as 16 per day, with the budget renewed every day.
- DP-SGD depends on clipping, noise, sampling, accounting and correct implementation: one identical run came out at ε ≈ 1.26 under the moments accountant and ε ≈ 9.34 under the strong composition theorem.
- Differential privacy complements but does not replace fairness, security, purpose limitation or access control — NIST SP 800-226 requires examining every component of its pyramid, and the DP accuracy gap on underrepresented classes ran to at least 20%.