Bolun Sun, Charles Chang, Yuen Yuen Ang, Ruotong Mu, Yuchen Xu, Zhengxin Zhang, Pingxu Hao. Proceedings of the 64th Annual Meeting of the Association for Computational Linguistics (Volume 1: Long Papers). 2026.

This paper presents a novel application of large language models (LLMs) to enhance user comprehension of privacy policies through an interactive dialogue agent. We demonstrate that LLMs significantly outperform traditional models in tasks like Data Practice Identification, Choice Identification, Policy Summarization, and Privacy Question Answering, setting new benchmarks in privacy policy analysis. Building on these findings, we introduce an innovative LLM-based agent that functions as an expert system for processing website privacy policies, guiding users through complex legal language without requiring them to pose specific questions. A user study with 100 participants showed that users assisted by the agent had higher comprehension levels (mean score of 2.6 out of 3 vs. 1.8 in the control group), reduced cognitive load (task difficulty ratings of 3.2 out of 10 vs. 7.8), increased confidence in managing privacy, and completed tasks in less time (5.5 minutes vs. 15.8 minutes). This work highlights the potential of LLM-based agents to transform user interaction with privacy policies, leading to more informed consent and empowering users in the digital services landscape.

Large language models (LLMs) process entire input contexts indiscriminately, which is inefficient when the information required to answer a query is localized within the context. We present dynamic context cutoff, a novel method enabling LLMs to self-terminate processing upon acquiring sufficient task-relevant information. Through analysis of model internals, we discover that specific attention heads inherently encode "sufficiency signals" -- detectable through lightweight classifiers -- that predict when critical information has been processed. This reveals a new efficiency paradigm: models' internal understanding naturally dictates processing needs rather than external compression heuristics. Comprehensive experiments across six QA datasets (up to 40K tokens) with three model families (LLaMA/Qwen/Mistral, 1B-70B) demonstrate 3.4% accuracy improvement while achieving 1.33x token reduction on average. Furthermore, our method demonstrates superior performance compared to other context efficiency methods at equivalent token reduction rates. Additionally, we observe an emergent scaling phenomenon: while smaller models require probing for sufficiency detection, larger models exhibit intrinsic self-assessment capabilities through prompting.