Federated Learning on Confidential Cloud Environments: Enabling Privacy-Aware AI for Finance and Healthcare
Published 22-07-2021
Keywords
- federated learning,
- confidential computing,
- privacy-preserving AI

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Abstract
This paper presents a comprehensive blueprint for implementing federated learning within confidential cloud environments, targeting privacy-preserving artificial intelligence applications in finance and healthcare. By integrating secure multi-party computation, homomorphic encryption, and trusted execution environments, the proposed architecture facilitates collaborative model training without compromising sensitive data across organizational and jurisdictional boundaries. We analyze the technical challenges associated with cross-cloud federation, data confidentiality, and compliance with regulatory frameworks such as HIPAA and GDPR. Moreover, the paper explores system-level design choices that optimize computational efficiency, communication overhead, and cryptographic robustness. Practical considerations for deploying federated models in high-stakes, data-sensitive sectors are discussed, along with recommendations for secure orchestration, trust establishment, and threat mitigation. This work contributes to the foundational understanding required for deploying scalable, privacy-aware federated learning systems in confidential cloud ecosystems.
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