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Synthetic Data

Artificially generated data that mimics the statistical properties of real-world data, used to train AI models when real data is scarce, expensive, or privacy-sensitive.

Gartner projected that by 2024, 60% of data used for AI development would be synthetically generated. Synthetic data addresses privacy concerns (no real personal data is exposed), reduces labeling costs, and can represent rare scenarios that are underrepresented in real datasets. Companies like Synthesis AI and Mostly AI specialize in generating synthetic training data. Autonomous vehicle companies generate millions of synthetic driving scenarios. However, synthetic data can introduce biases if the generation process does not accurately reflect real-world distributions.

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