Privacy-enhancing technologies (PETs) are critical tools for building trust in the collaborative development and sharing of artificial intelligence (AI) models while protecting privacy, intellectual property, and sensitive information. This report identifies two key types of PET use cases. The first is enhancing the performance of AI models through confidential and minimal use of input data, with technologies like trusted execution environments, federated learning, and secure multi-party computation. The second is enabling the confidential co-creation and sharing of AI models using tools such as differential privacy, trusted execution environments, and homomorphic encryption. PETs can reduce the need for additional data collection, facilitate data-sharing partnerships, and help address risks in AI governance. However, they are not silver bullets. While combining different PETs can help compensate for their individual limitations, balancing utility, efficiency, and usability remains challenging. Governments and regulators can encourage PET adoption through policies, including guidance, regulatory sandboxes, and R&D support, which would help build sustainable PET markets and promote trustworthy AI innovation.
