PPFedIT: Towards Privacy-Preserving Federated Instruction Tuning with Few-shot Local Examples

Abstract

Instruction tuning aligns large language models (LLMs) with human intentions but requires diverse, high-quality data that are difficult to collect in privacy-sensitive domains. Federated instruction tuning (FedIT) enables collaborative training across data owners, yet existing methods typically assume sufficient local data. In realistic few-shot settings, limited samples can cause overfitting, degrade performance, and increase vulnerability to training data extraction attacks. We propose PPFedIT, a federated algorithm that improves both model performance and privacy protection in federated few-shot learning. It comprises three client-side steps: (1) synthetic data generation, which uses LLMs to diversify and enrich local data; (2) parameter isolation training, which updates the shared global LLM on synthetic data and local LLMs on private local data to mitigate synthetic-data noise; and (3) local aggregation then sharing, which mixes global and local model parameters before uploading them for server aggregation to mitigate data extraction attacks. Experiments on three open-source datasets show that PPFedIT improves model performance by an average of 8.4% and reduces the risk of data extraction attacks by approximately 20% in challenging federated few-shot settings.