Abstract:Graph-based recommender systems are highly effective at extracting collaborative signals from user--item interactions, and federated learning (FL) allows these models to be trained while preserving user privacy. However, aggregating graph representations across distributed, non-IID clients remains a challenge; structural embeddings learned locally often misalign, and naive averaging fails to capture meaningful cross-client relationships. Most existing federated graph methods rely exclusively on structural aggregation, neglecting the rich, global semantic context available in large language models (LLMs). In this paper, we propose a novel framework that uses LLM-encoded knowledge to guide federated graph recommendation. Specifically, clients learn structural representations from local graphs while simultaneously summarizing their typical interaction patterns into compact semantic vectors via a frozen LLM. The central server then uses these LLM-encoded semantic signals to discover related preference patterns across clients, guiding the selective aggregation of their structural representations. This enables semantically informed cross-client collaboration without exposing raw data. Extensive experiments on standard benchmarks show that guiding structural alignment with LLM-encoded knowledge consistently improves recommendation accuracy over existing federated graph baselines.
Abstract:Federated sequential recommendation (FedSeqRec) aims to perform next-item prediction while keeping user data decentralised, yet model quality is frequently constrained by fragmented, noisy, and homogeneous interaction logs stored on individual devices. Many existing approaches attempt to compensate through manual data augmentation or additional server-side constraints, but these strategies either introduce limited semantic diversity or increase system overhead. To overcome these challenges, we propose \textbf{LUMOS}, a parameter-isolated FedSeqRec architecture that integrates large language models (LLMs) as \emph{local semantic generators}. Instead of sharing gradients or auxiliary parameters, LUMOS privately invokes an on-device LLM to construct three complementary sequence variants from each user history: (i) \emph{future-oriented} trajectories that infer plausible behavioural continuations, (ii) \emph{semantically equivalent rephrasings} that retain user intent while diversifying interaction patterns, and (iii) \emph{preference-inconsistent counterfactuals} that serve as informative negatives. These synthesized sequences are jointly encoded within the federated backbone through a tri-view contrastive optimisation scheme, enabling richer representation learning without exposing sensitive information. Experimental results across three public benchmarks show that LUMOS achieves consistent gains over competitive centralised and federated baselines on HR@20 and NDCG@20. In addition, the use of semantically grounded positive signals and counterfactual negatives improves robustness under noisy and adversarial environments, even without dedicated server-side protection modules. Overall, this work demonstrates the potential of LLM-driven semantic generation as a new paradigm for advancing privacy-preserving federated recommendation.