Designing Privacy Choice in Generative AI Chatbot Ecosystems

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 follow-up 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.