Beyond Refusal: Probing the Limits of Agentic Self-Correction for Semantic Sensitive Information

While defenses for structured PII are mature, Large Language Models (LLMs) pose a new threat: Semantic Sensitive Information (SemSI), where models infer sensitive identity attributes, generate reputation-harmful content, or hallucinate potentially wrong information. The capacity of LLMs to self-regulate these complex, context-dependent sensitive information leaks without destroying utility remains an open scientific question. To address this, we introduce SemSIEdit, an inference-time framework where an agentic "Editor" iteratively critiques and rewrites sensitive spans to preserve narrative flow rather than simply refusing to answer. Our analysis reveals a Privacy-Utility Pareto Frontier, where this agentic rewriting reduces leakage by 34.6% across all three SemSI categories while incurring a marginal utility loss of 9.8%. We also uncover a Scale-Dependent Safety Divergence: large reasoning models (e.g., GPT-5) achieve safety through constructive expansion (adding nuance), whereas capacity-constrained models revert to destructive truncation (deleting text). Finally, we identify a Reasoning Paradox: while inference-time reasoning increases baseline risk by enabling the model to make deeper sensitive inferences, it simultaneously empowers the defense to execute safe rewrites.