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Privacy-Preserving Federated Learning Architecture for Multi-Tenant AI Agent Systems
draft-kale-agntcy-federated-privacy-00

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Author Nik Kale
Last updated 2026-01-07
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draft-kale-agntcy-federated-privacy-00
Network Working Group                                           N. Kale
Internet-Draft                                             Cisco Systems
Intended status: Informational                             January 2026
Expires: July 2026

      Privacy-Preserving Federated Learning Architecture for
              Multi-Tenant AI Agent Systems

                 draft-kale-agntcy-federated-privacy-00

Abstract

   This document specifies a reference architecture for privacy-
   preserving federated learning in multi-tenant AI agent deployments.
   It addresses the challenge of enabling collaborative model training
   across organizational boundaries while maintaining formal privacy
   guarantees and tenant data isolation.  The architecture combines
   federated averaging, differential privacy mechanisms, and secure
   aggregation to enable cross-tenant knowledge transfer without
   exposing sensitive behavioral data.

Status of This Memo

   This Internet-Draft is submitted in full conformance with the
   provisions of BCP 78 and BCP 79.

   Internet-Drafts are working documents of the Internet Engineering
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   reference material or to cite them other than as "work in progress."

   This Internet-Draft will expire on July 7, 2026.

Copyright Notice

   Copyright (c) 2026 IETF Trust and the persons identified as the
   document authors.  All rights reserved.

   This document is subject to BCP 78 and the IETF Trust's Legal
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   (https://trustee.ietf.org/license-info) in effect on the date of
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Table of Contents

   1.  Introduction  . . . . . . . . . . . . . . . . . . . . . . . .   2
     1.1.  Relationship to AI Agent Protocol Work  . . . . . . . . .   3
   2.  Terminology . . . . . . . . . . . . . . . . . . . . . . . . .   3
   3.  Problem Statement . . . . . . . . . . . . . . . . . . . . . .   4
   4.  Architecture Overview . . . . . . . . . . . . . . . . . . . .   4
     4.1.  System Components . . . . . . . . . . . . . . . . . . . .   4
     4.2.  Data Flow . . . . . . . . . . . . . . . . . . . . . . . .   6
     4.3.  Trust Model . . . . . . . . . . . . . . . . . . . . . . .   6
   5.  Federated Learning Protocol . . . . . . . . . . . . . . . . .   6
     5.1.  Initialization  . . . . . . . . . . . . . . . . . . . . .   7
     5.2.  Local Training Phase  . . . . . . . . . . . . . . . . . .   7
     5.3.  Aggregation Phase . . . . . . . . . . . . . . . . . . . .   7
     5.4.  Weighting Strategies  . . . . . . . . . . . . . . . . . .   8
   6.  Privacy Mechanisms  . . . . . . . . . . . . . . . . . . . . .   8
     6.1.  Differential Privacy Definition . . . . . . . . . . . . .   8
     6.2.  Gaussian Mechanism  . . . . . . . . . . . . . . . . . . .   8
     6.3.  Privacy Budget Allocation . . . . . . . . . . . . . . . .   9
     6.4.  Gradient Clipping . . . . . . . . . . . . . . . . . . . .   9
   7.  Security Considerations . . . . . . . . . . . . . . . . . . .   9
     7.1.  Threat Model  . . . . . . . . . . . . . . . . . . . . . .   9
     7.2.  Attacks Not Addressed . . . . . . . . . . . . . . . . . .  10
     7.3.  Extensions for Stronger Security  . . . . . . . . . . . .  10
     7.4.  Compliance Considerations . . . . . . . . . . . . . . . .  10
   8.  IANA Considerations . . . . . . . . . . . . . . . . . . . . .  11
   9.  References  . . . . . . . . . . . . . . . . . . . . . . . . .  11
     9.1.  Normative References  . . . . . . . . . . . . . . . . . .  11
     9.2.  Informative References  . . . . . . . . . . . . . . . . .  11
   Appendix A.  Example Configuration  . . . . . . . . . . . . . . .  12
   Author's Address  . . . . . . . . . . . . . . . . . . . . . . . .  13

1.  Introduction

   AI agent systems increasingly operate in multi-tenant enterprise
   environments where behavioral data from user interactions could
   improve system performance through machine learning.  However,
   centralizing such data across organizational boundaries conflicts
   with privacy regulations (GDPR, HIPAA, CCPA), contractual data
   isolation requirements, and enterprise security policies.

   This document specifies a federated learning architecture that
   enables collaborative model training while ensuring:

   o  Tenant data isolation: Raw behavioral data never leaves tenant
      boundaries

   o  Formal privacy guarantees: Differential privacy bounds
      information leakage

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   o  Regulatory compliance: Architecture supports GDPR, HIPAA, and
      CCPA requirements

   o  Scalable deployment: Protocol supports large numbers of tenants
      with heterogeneous data distributions

   The architecture applies broadly to any multi-tenant machine
   learning deployment requiring privacy preservation, with particular
   relevance to AI agent systems operating across organizational
   boundaries.  This work builds on foundational research in federated
   learning [McMahan17] and differential privacy [Dwork14] [Abadi16],
   as well as recent advances addressing open problems in the field
   [Kairouz21] [Wang23].

1.1.  Relationship to AI Agent Protocol Work

   This document complements ongoing work on AI agent protocols at the
   IETF, including frameworks for agent communication [Rosenberg25]
   and secure messaging for agentic AI [SLIM25].  The privacy-
   preserving aggregation mechanisms specified here address federated
   learning requirements that arise when AI agents operate across
   organizational boundaries and must learn from distributed behavioral
   data without centralizing sensitive information.

2.  Terminology

   The key words "MUST", "MUST NOT", "REQUIRED", "SHALL", "SHALL NOT",
   "SHOULD", "SHOULD NOT", "RECOMMENDED", "NOT RECOMMENDED", "MAY", and
   "OPTIONAL" in this document are to be interpreted as described in
   BCP 14 [RFC2119] [RFC8174] when, and only when, they appear in all
   capitals, as shown here.

   Aggregation Server:  A central coordinator that receives model
      updates from tenants and computes aggregated models.

   Differential Privacy (DP):  A mathematical framework providing
      formal bounds on information leakage from statistical queries.

   Federated Learning (FL):  A machine learning approach where model
      training occurs on decentralized data without centralizing the
      data itself.

   Local Model:  A model trained on a single tenant's data.

   Global Model:  An aggregated model computed from multiple local
      model updates.

   Privacy Budget:  Parameters (epsilon, delta) that quantify the
      privacy guarantee provided by differential privacy mechanisms.

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   Tenant:  An organizational entity with isolated data and computing
      resources within a multi-tenant deployment.

3.  Problem Statement

   Consider an AI agent system deployed across N organizational
   tenants.  Each tenant generates behavioral data from user
   interactions with the agent.  The system operator wishes to:

   1.  Train personalization models that adapt to user behavior

   2.  Leverage patterns across tenants to improve model quality

   3.  Maintain strict tenant data isolation

   4.  Comply with privacy regulations

   Traditional centralized machine learning requires aggregating data
   from all tenants, violating requirements 3 and 4.  Purely local
   training (each tenant trains independently) satisfies isolation but
   sacrifices the benefits of cross-tenant learning (requirement 2).

   This document specifies an architecture that satisfies all four
   requirements through federated learning with differential privacy.

4.  Architecture Overview

4.1.  System Components

   The architecture comprises the following components, illustrated in
   Figure 1:

   o  Local Data stores residing within each tenant boundary

   o  Local Model training infrastructure at each tenant

   o  Differential Privacy (DP) noise injection modules

   o  A central Aggregation Server for computing global model updates

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   +------------------+   +------------------+   +------------------+
   |    Tenant A      |   |    Tenant B      |   |    Tenant C      |
   |  +------------+  |   |  +------------+  |   |  +------------+  |
   |  | Local Data |  |   |  | Local Data |  |   |  | Local Data |  |
   |  +-----+------+  |   |  +-----+------+  |   |  +-----+------+  |
   |        |         |   |        |         |   |        |         |
   |  +-----v------+  |   |  +-----v------+  |   |  +-----v------+  |
   |  |Local Model |  |   |  |Local Model |  |   |  |Local Model |  |
   |  +-----+------+  |   |  +-----+------+  |   |  +-----+------+  |
   |        |         |   |        |         |   |        |         |
   |  +-----v------+  |   |  +-----v------+  |   |  +-----v------+  |
   |  |  DP Noise  |  |   |  |  DP Noise  |  |   |  |  DP Noise  |  |
   |  +-----+------+  |   |  +-----+------+  |   |  +-----+------+  |
   +--------+---------+   +--------+---------+   +--------+---------+
            |                      |                      |
            +----------------------+----------------------+
                                   |
                        +----------v-----------+
                        |  Aggregation Server  |
                        |  (Computes Global    |
                        |   Model Updates)     |
                        +----------+-----------+
                                   |
            +----------------------+----------------------+
            |                      |                      |
   +--------v---------+   +--------v---------+   +--------v---------+
   |    Tenant A      |   |    Tenant B      |   |    Tenant C      |
   |  Receives Global |   |  Receives Global |   |  Receives Global |
   |  Model Update    |   |  Model Update    |   |  Model Update    |
   +------------------+   +------------------+   +------------------+

                    Figure 1: Federated Architecture

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4.2.  Data Flow

   1.  Each tenant trains a local model on tenant-specific data

   2.  Model updates (not raw data) are computed

   3.  Differential privacy noise is added to updates

   4.  Noisy updates are transmitted to aggregation server

   5.  Server computes weighted average of updates

   6.  Global model is distributed back to tenants

   7.  Process repeats for specified number of rounds

4.3.  Trust Model

   The architecture assumes:

   o  Aggregation server is honest-but-curious: It follows the
      protocol correctly but may attempt to infer information from
      received updates

   o  Tenants are honest: They train models correctly and do not
      attempt to poison the global model

   o  Communication channels are secure: TLS protects updates in
      transit

   Section 7 discusses extensions for stronger threat models.

5.  Federated Learning Protocol

   This section specifies the federated learning protocol in detail.
   The protocol follows the FedAvg algorithm structure with
   modifications for differential privacy.

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5.1.  Initialization

   The aggregation server MUST:

   1.  Generate initial global model parameters theta_0

   2.  Distribute theta_0 to all participating tenants

   3.  Specify privacy budget (epsilon, delta) for the training session

   4.  Specify number of training rounds T

5.2.  Local Training Phase

   For each round t, each tenant i MUST:

   1.  Receive current global model theta_t from aggregation server

   2.  Train local model on tenant data for E local epochs:
       theta_i = LocalTrain(theta_t, D_i, E)

   3.  Compute model update: delta_i = theta_i - theta_t

   4.  Clip update to bound sensitivity:
       delta_i_clipped = Clip(delta_i, C) where C is the clipping bound

   5.  Add Gaussian noise for differential privacy:
       delta_i_dp = delta_i_clipped + N(0, sigma^2 * I)

   6.  Transmit delta_i_dp to aggregation server

5.3.  Aggregation Phase

   The aggregation server MUST:

   1.  Receive noisy updates {delta_1_dp, ..., delta_n_dp} from tenants

   2.  Compute weighted average:
       delta_global = sum(w_i * delta_i_dp) where sum(w_i) = 1

   3.  Update global model: theta_{t+1} = theta_t + delta_global

   4.  Distribute theta_{t+1} to all tenants

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5.4.  Weighting Strategies

   Tenant weights w_i MAY be computed based on:

   o  Population size: Larger tenants contribute proportionally more

   o  Data quality: Tenants with lower-variance updates receive higher
      weight

   o  Equal weighting: w_i = 1/n for all tenants

   The specific weighting strategy SHOULD be documented in the
   deployment configuration.

6.  Privacy Mechanisms

6.1.  Differential Privacy Definition

   A mechanism M satisfies (epsilon, delta)-differential privacy if
   for all datasets D and D' differing in one record, and all output
   sets S:

      Pr[M(D) in S] <= e^epsilon * Pr[M(D') in S] + delta

6.2.  Gaussian Mechanism

   The Gaussian mechanism achieves (epsilon, delta)-DP by adding noise:

      sigma >= C * sqrt(2 * ln(1.25/delta)) / epsilon

   where C is the L2 sensitivity bound (clipping threshold).

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6.3.  Privacy Budget Allocation

   For T training rounds with subsampling rate q, the total privacy
   budget follows composition theorems.  Implementations SHOULD use
   advanced composition or Renyi differential privacy accounting for
   tighter bounds.

   Recommended privacy parameters for enterprise deployments:

      epsilon: 1.0 to 10.0 (depending on data sensitivity)
      delta: 1/n where n is the minimum tenant population size
      C (clipping bound): Determined empirically based on gradient
      norms

6.4.  Gradient Clipping

   Before noise addition, model updates MUST be clipped:

      delta_clipped = delta * min(1, C / ||delta||_2)

   This bounds the sensitivity of individual data points, enabling
   precise privacy accounting.

7.  Security Considerations

7.1.  Threat Model

   This architecture protects against:

   o  Honest-but-curious aggregation server attempting to infer tenant
      data from model updates

   o  External attackers observing aggregated models

   o  Membership inference attacks against the global model

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7.2.  Attacks Not Addressed

   The basic architecture does NOT protect against:

   o  Malicious tenants submitting poisoned updates

   o  Collusion between aggregation server and tenants

   o  Model inversion attacks against the final trained model

7.3.  Extensions for Stronger Security

7.3.1.  Secure Aggregation

   To protect against curious aggregation servers, implementations MAY
   use secure aggregation protocols where the server learns only the
   sum of updates, not individual tenant contributions.  See
   [Bonawitz17] for protocol details.

7.3.2.  Byzantine Fault Tolerance

   To protect against malicious tenants, implementations MAY use
   Byzantine-resilient aggregation methods such as coordinate-wise
   median or trimmed mean.

7.4.  Compliance Considerations

   Implementations targeting GDPR compliance SHOULD:

   o  Document privacy budget selection rationale

   o  Maintain audit logs of aggregation operations

   o  Implement data subject access request procedures

   o  Specify data retention policies for model checkpoints

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8.  IANA Considerations

   This document has no IANA actions.

9.  References

9.1.  Normative References

   [RFC2119]  Bradner, S., "Key words for use in RFCs to Indicate
              Requirement Levels", BCP 14, RFC 2119,
              DOI 10.17487/RFC2119, March 1997,
              <https://www.rfc-editor.org/info/rfc2119>.

   [RFC8174]  Leiba, B., "Ambiguity of Uppercase vs Lowercase in RFC
              2119 Key Words", BCP 14, RFC 8174,
              DOI 10.17487/RFC8174, May 2017,
              <https://www.rfc-editor.org/info/rfc8174>.

9.2.  Informative References

   [Abadi16]  Abadi, M., Chu, A., Goodfellow, I., McMahan, H.B.,
              Mironov, I., Talwar, K., and L. Zhang, "Deep Learning
              with Differential Privacy", Proceedings of the 2016 ACM
              SIGSAC Conference on Computer and Communications
              Security, 2016.

   [Bonawitz17]
              Bonawitz, K., Ivanov, V., Kreuter, B., Marcedone, A.,
              McMahan, H.B., Patel, S., Ramage, D., Segal, A., and K.
              Seth, "Practical Secure Aggregation for Privacy-
              Preserving Machine Learning", Proceedings of the 2017
              ACM SIGSAC Conference on Computer and Communications
              Security, 2017.

   [Dwork14]  Dwork, C. and A. Roth, "The Algorithmic Foundations of
              Differential Privacy", Foundations and Trends in
              Theoretical Computer Science, Vol. 9, No. 3-4, 2014.

   [Kairouz21]
              Kairouz, P., McMahan, H.B., Avent, B., et al., "Advances
              and Open Problems in Federated Learning", Foundations
              and Trends in Machine Learning, Vol. 14, No. 1-2, 2021.

   [McMahan17]
              McMahan, H.B., Moore, E., Ramage, D., Hampson, S., and
              B. Aguera y Arcas, "Communication-Efficient Learning of
              Deep Networks from Decentralized Data", Proceedings of
              AISTATS, 2017.

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   [Rosenberg25]
              Rosenberg, J. and C. Jennings, "Framework, Use Cases and
              Requirements for AI Agent Protocols", Work in Progress,
              Internet-Draft, draft-rosenberg-aiproto-framework-00,
              October 2025.

   [SLIM25]   Muscariello, L., Papalini, M., Sardara, S., and S.
              Betts, "Secure Low-Latency Interactive Messaging
              (SLIM)", Work in Progress, Internet-Draft,
              draft-mpsb-agntcy-slim-00, October 2025.

   [Wang23]   Wang, J., Charles, Z., Xu, Z., Joshi, G., McMahan, H.B.,
              et al., "A Field Guide to Federated Optimization",
              arXiv:2107.06917, 2023.

Appendix A.  Example Configuration

   Example deployment configuration for enterprise AI agent system:

   {
     "federated_learning": {
       "rounds": 100,
       "local_epochs": 5,
       "learning_rate": 0.01,
       "privacy": {
         "epsilon": 3.0,
         "delta": 1e-6,
         "clipping_bound": 1.0,
         "noise_multiplier": 1.1
       },
       "aggregation": {
         "method": "fedavg",
         "weighting": "population_proportional",
         "min_tenants_per_round": 10
       }
     }
   }

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Author's Address

   Nik Kale
   Cisco Systems, Inc.
   3700 Cisco Way
   San Jose, CA 95134
   United States of America

   Email: nikkal@cisco.com

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