Privacy-Preserving Feature Valuation in Vertical Federated Learning Using Shapley-CMI and PSI Permutation

• URL: http://arxiv.org/abs/2512.14767v1
• Date: Tue, 16 Dec 2025 08:01:39 GMT
• Title: Privacy-Preserving Feature Valuation in Vertical Federated Learning Using Shapley-CMI and PSI Permutation
• Abstract summary: This paper presents a privacy-preserving implementation of Shapley-CMI for Vertical FL (VFL)<n>It computes encrypted intersection sizes across discretized and encrypted ID groups, without the need for raw data exchange.<n>Initial experiments confirm the correctness and privacy of the proposed system.
• Score: 0.0
• License: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Abstract: Federated Learning (FL) is an emerging machine learning paradigm that enables multiple parties to collaboratively train models without sharing raw data, ensuring data privacy. In Vertical FL (VFL), where each party holds different features for the same users, a key challenge is to evaluate the feature contribution of each party before any model is trained, particularly in the early stages when no model exists. To address this, the Shapley-CMI method was recently proposed as a model-free, information-theoretic approach to feature valuation using Conditional Mutual Information (CMI). However, its original formulation did not provide a practical implementation capable of computing the required permutations and intersections securely. This paper presents a novel privacy-preserving implementation of Shapley-CMI for VFL. Our system introduces a private set intersection (PSI) server that performs all necessary feature permutations and computes encrypted intersection sizes across discretized and encrypted ID groups, without the need for raw data exchange. Each party then uses these intersection results to compute Shapley-CMI values, computing the marginal utility of their features. Initial experiments confirm the correctness and privacy of the proposed system, demonstrating its viability for secure and efficient feature contribution estimation in VFL. This approach ensures data confidentiality, scales across multiple parties, and enables fair data valuation without requiring the sharing of raw data or training models.

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