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Homomorphic Encryption

PETs

Classification

AI Security and Privacy

Overview

Homomorphic encryption (HE) is a cryptographic technique that allows computations to be performed directly on encrypted data, producing encrypted results that, when decrypted, match the results of operations performed on the plaintext. This property enables privacy-preserving analytics, secure outsourcing of computation, and collaborative machine learning without exposing sensitive data. HE schemes can be partially, somewhat, or fully homomorphic, depending on the operations and depth of computation they support. While HE offers strong privacy guarantees, its practical adoption is limited by significant computational overhead, increased latency, and complex key management. Additionally, implementing HE securely at scale remains challenging due to issues like ciphertext expansion and compatibility with existing AI workflows. Despite these limitations, HE is a promising tool for privacy-preserving AI, especially in regulated sectors.

Governance Context

Homomorphic encryption aligns with legal and regulatory obligations for data privacy and security, such as the EU's GDPR and the US HIPAA. Under GDPR, organizations must implement appropriate technical measures to protect personal data, and HE can serve as a control to enable lawful data processing without direct access to sensitive information. NIST's Privacy Framework and ISO/IEC 27001 both recommend encryption and minimization of data exposure as best practices; HE can help fulfill these requirements by enabling computation without decryption. However, organizations must also ensure that HE implementations are robust against side-channel and implementation attacks, and that key management complies with standards like NIST SP 800-57. Controls such as regular cryptographic reviews and formal risk assessments are necessary to verify ongoing compliance and effectiveness. Concrete obligations include: (1) implementing and documenting strong key management practices aligned with NIST SP 800-57, and (2) conducting periodic cryptographic risk assessments and reviews to ensure the integrity and effectiveness of the HE deployment.

Ethical & Societal Implications

Homomorphic encryption enhances individual privacy and trust in AI systems by reducing the risk of data exposure during computation. It supports data minimization principles and enables secure collaboration across organizations and borders. However, the high computational cost may limit access to only well-resourced entities, potentially exacerbating digital divides. Furthermore, overreliance on cryptographic techniques without comprehensive security assessments can create a false sense of security, especially if implementation flaws or side-channel vulnerabilities exist. Ethical deployment requires transparency about limitations, responsible stewardship of cryptographic keys, and ongoing monitoring to ensure that HE continues to deliver on its privacy promises as technology and threats evolve.

Key Takeaways

Homomorphic encryption enables computation on encrypted data, supporting privacy-preserving AI.; It is relevant for compliance with data protection regulations like GDPR and HIPAA.; HE incurs significant computational and operational overhead, limiting scalability.; Robust governance requires secure key management and regular cryptographic reviews.; Implementation flaws or metadata leakage can undermine HE's privacy guarantees.; HE is especially valuable in sectors handling sensitive data, such as healthcare and finance.; Periodic risk assessments and adherence to cryptographic standards are mandatory for effective HE deployment.

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