Synthetic Data: A path to next-generation machine learning

AI, large data, big data, and now Synthetic Data. In the evolving landscape of machine learning, the competition for robust diverse, and abundant data fuels innovation. Synthetic data helps businesses and developers to create AI models and make the right decisions.

Imagine generating data that mirrors reality, empowering machines to learn and adapt with unprecedented agility. Already some companies have started to use Synthetic data. Around 60% of all data used in AI development will be Synthetic rather than real by 2024. Developers in our AI app development company also research synthetic data usage. In this blog, we will begin a journey into the world of Synthetic data. You will learn about its characteristics, pros and cons, use in AI-driven businesses, and much more. So, join us on the journey of revealing the potential of Synthetic, dummy, or fake data shaping the path of next-generation AI.

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What is Synthetic data?

Synthetic data is also called dummy data and fake data. It is generated by computers rather than real-world events. It is crafted with the help of algorithms and suitable models to replicate the structure of authentic data. Synthetic data is manufactured without having any sensitive information that contains personal information.

It helps in augmenting and replacing real data for various purposes, for instance, training machine learning models, testing applications, and protecting sensitive information. It maintains statistical accuracy for analysis and development. The market size of Synthetic data in 2022 was around $163.8 million (grandviewresearch).

There are two prominent reasons for the emergence of Synthetic data.

  • Data privacy concerns
  • Need for large datasets

If you find learning the concept easily through a video, you can check out it below.

Characteristics of Synthetic Data

What is Synthetic data? You must be thinking about how Synthetic data differs from real data and who makes Synthetic data. We have presented answers to all your queries in this blog. To understand what is Synthetic data, read its characteristics.

  • Artificially generated data from computers
  • Not collected from real-world sources
  • Contains no identifiable information, ensuring confidentiality
  • Tailored to specific scenarios or distributions as needed
  • Used to train models of machine learning

Pay attention to the image below. It shows the Synthetic data generation market in the USA from 2020-2030.

north america

image source

Benefits of using “Synthetic Data over “Real Data

When businesses have real data, why do they need to go for Synthetic data? There are various reasons for this.

  • Privacy preservation
  • Unlimited quantity
  • Cost efficiency
  • Diverse scenarios
  • Consistency and control
  • Reduced bias
  • Rapid iteration

Have a deep understanding of these benefits of Synthetic data in the space below.

  • Privacy preservation:

Synthetic data creation involves generating entirely new data points that mimic real data patterns without containing any real and unidentifiable information. It minimizes the risk associated with data breaches as synthetic data doesn’t contain real user details.

Organizations often have to comply with strict data privacy laws like GDPR, HIPPA, and others by avoiding exposure to actual sensitive data. So, it facilitates safe data sharing for research and analysis without risking the exposure of an individual’s personal information.

Researchers and developers can work effectively without fearing sensitive information exposure and misuse.

  • Unlimited quantity:

A huge amount of data is needed to create AI models, create customized AI-driven business tools, and make informed decisions. However, the collection of real-world data requires a lot of time and resources. On the other hand, Synthetic data can be generated in unlimited quantity as it is not extracted from the real world, computers create Synthetic data.

With algorithms and models in place, generating vast volumes of synthetic data becomes feasible and quick. You can adjust the quantity and diversity of generated data to meet specific requirements of machine learning models. This unlimited supply of data empowers researchers and developers to experiment extensively.

  • Cost efficiency:

The use of Synthetic data reduces costs associated with gathering, sorting, storing, and processing real data. Synthetic data turns it into a cost-effective selection for AI projects. Businesses can save on resources by generating data rather than producing it and avoid the expenses involved in maintaining and managing large datasets.

  • Diverse scenarios:

Synthetic data allows the simulation of diverse scenarios, enhancing the robustness of models by providing a wide range of data representations. This capability to generate tailored scenarios helps in training AI systems to handle numerous situations. It ensures they perform effectively across different contexts, thereby improving their adaptability and reliability.

  • Consistency and control:

Synthetic data offers consistent quality and precise control over data attributes, ensuring standardized datasets for experimentation and model training. This level of control enables customization, allowing researchers and developers to tailor datasets to specific scenarios. It also ensures consistent quality across experiments and analyses.

  • Reduced bias:

Synthetic data avoids biases that naturally exist in real data sets. It promotes more equal model training. Generating data free from inherent biases presents real-world samples, and makes effective models. And this model trained on synthetic data is less likely to perpetuate or amplify existing biases. It contributes to fairer and more inclusive AI systems. Developers can use the best database for web applications  using synthetic data.

  • Rapid iteration:

Synthetic data expedites model iteration by simplifying data generation. Its ease of creation allows fast experimentation with various models, accelerating the testing phase and enabling more rapid refinements. This effectiveness in testing and iterating enhances the overall development speed and efficiency of machine learning models.

We take care of your concerns even after delivering quality software solutions

How can Synthetic Data help AI-driven businesses?

What if you don’t have to worry before sharing data with anyone?

What if you can create a new revenue stream by selling data?

What if you can train AI using unique data for the growth of your business?

It is all possible in today’s time. You can accelerate the growth of your online and offline business with the help of AI models built using synthetic data. Synthetic data help AI-driven businesses in various ways. Developers can use it for on-demand app development trends.

For  AI app development  businesses can seek help from experienced developers who use Synthetic data to enhance customer experience.

Have a look at the image below, it shows global statistics about Synthetic data.

global synthetic

image source


  • Quick access to data
  • Protection of sensitive information
  • Create sensitive data as needed
  • Cost-effective data collection

Have a look at the below information to deeply understand how Synthetic data helps businesses.

  • Instant data access:

It provides quick access to diverse datasets and eliminates the need for time-consuming data collection. Since businesses face high competition, instant data access can accelerate their processes and help them to be ahead of the curve.

  • Protection of sensitive information:

Synthetic data safeguards sensitive information by creating artificial yet realistic data to protect user privacy. Many businesses need help with the problem of how to protect the data of customers and whether it use it for the growth of the company or not. Now they don’t have to face such a dilemma as synthetic data can solve this problem.

  • Create sensitive data as needed:

Businesses can generate specific sensitive data required for training without exposing actual user details. For instance, in healthcare, synthetic data can stimulate patient records with diverse medical conditions, ages, and demographics. It ensures training AI models without relying on real patient information.

  • Cost-effective data collection:

Using synthetic data minimizes expenses linked with sourcing, storing, and processing. Businesses have to spend a lot on data processing. They can deal with it by leveraging the power of synthetic data. Businesses can avoid the need for large-scale data acquisition which is generally expensive. The financial relief provides a budget-friendly avenue for training AI models or conducting experiments.

The role of Synthetic data in machine learning advancements

AI is one of the best emerging technologies  and Synthetic data help to enhance this technology. Synthetic data helps in machine learning advancements. Large volumes of data are required for machine learning and creating AI models.

Synthetic data diversity empowers models to recognize and adapt to varied scenarios. It improved their accuracy and robustness. Synthetic data helps businesses in circumstances where real data is scarce and sensitive such as healthcare and finance. It helps to fill gaps by generating tailored datasets that mimic real-world situations while safeguarding sensitive situations.

The abundance of customizable data accelerates model training and enables more rapid iterations and experimentations. This agility helps foster new technologies and the development of more sophisticated AI models. Synthetic data also mitigates biases present in real datasets, ensuring fairer model training.

Developers can improve machine learning processes by feeding synthetic data. It is because this dataset has no biases which generally require a lot of time to find out and filter it. Model trainers and developers can save a lot of time by using synthetic data and use it for creative tasks and other tasks related to AI modeling.

Because of the cost-effective nature and capacity of scalability further contribute to its significance in various industries. It makes it an indispensable tool for researchers and businesses aiming to enhance their machine-learning capacities. Leveraging the power of Synthetic data is at the beginning of driving advancements in the field of AI and machine learning.

Also Read: 5 Ways Big Data Is Transforming the On-demand Food Delivery Services

Methods of generating Synthetic data

Here are different methods used to generate Synthetic data.

1) Statistical modeling:

It means, creating data that adheres to statistical distribution and patterns similar to real-world data. Techniques like Monte Carlo simulations generate synthetic data based on probabilistic models.

2) Generative Adversarial Networks (GANs):

GANs consist of two neural networks, a generator, and a discriminator. As the name implies, the generator’s work is to generate Synthetic data, and the evaluation of authenticity is done by the discriminator. Through iterative training, GANs produce highly realistic Synthetic data.

3) Data augmentation:

It is a technique where existing datasets are modified and expanded by applying transformations like rotations, translations, and adding noise. This process generates new data points while preserving the original dataset’s characteristics.

4) Rule-based generation:

Crafting Synthetic data based on already defined regulations and algorithms. This method involves creating specific patterns or structures to mimic real data characteristics.

5) Simulation and Simulators:

It means, creating Synthetic data by simulating real-world scenarios or environments. For example, in autonomous vehicle development, simulators mimic driving conditions to generate different datasets.

6) Privacy-preserving techniques:

This technique indicates the generation of Synthetic data while ensuring privacy. For this, applying techniques like differential privacy is crucial. It allows the generation of data that preserves privacy while still being useful for analysis.

There are some other methods, but the use of the methods depends on the needs of your model and business. Each method has its strengths and weaknesses according to the need for different applications and data requirements.

Applications of Synthetic data across industries

Many industries have benefited from the use of Synthetic data in various ways. Here are some of the popular industries that have shown interest in this technology.

  • Healthcare
  • Finance
  • Automotive
  • Retail
  • Cybersecurity
  • Entertainment
  • Manufacturing

Let’s read about all the industries in the space below and understand in how many types of Synthetic data can be used.

  • Healthcare: Generating Synthetic medical data helps in training AI for diagnostics and ensuring patient privacy.
  • Finance: Using Synthetic financial records helps in fraud detection and financial forecasting without compromising sensitive data.
  • Automotive: Simulating driving scenarios creates diverse datasets for training autonomous vehicles
  • Retail: Generating Synthetic customer data helps in personalized marketing and inventory management.
  • Cybersecurity: Synthetic data helps to assume cyber attacks and test and strengthen security systems.
  • Entertainment: Creating Synthetic characters and environments for gaming and animation development makes processes easy and quick in the entertainment world.
  • Manufacturing: Synthetic data also helps in assuming production processes to ensure efficient operations and quality control.

These applications demonstrate how Synthetic data can be used in various industries. When hiring AI developers, discuss whether they use Synthetic data and whether it is helpful for your project or not.

Ethical considerations and challenges for using Synthetic data

Although synthetic data is not real data and doesn’t hold personal information, still some ethical concerns are linked to it. Scroll down to know them.

1) Privacy concerns:

Despite not containing real data, Synthetic data might inadvertently reveal patterns that can compromise individual privacy.

2) Bias introduction:

If not properly generated, Synthetic data can inherit biases from the original datasets, leading to discrimination.

3) Quality assurance:

Ensuring the quality of Synthetic data is essential to avoid misleading or incorrect model outcomes.

4) Legal implications:

There might be legal implications if Synthetic data is mistakenly used to make critical decisions because it lacks authenticity.

5) Regulatory compliance:

Complying with data protection laws and regulations can be challenging when using Synthetic data as It can lead to compliance issues.

Is Synthetic data the future of AI?

Synthetic data is a significant part of the future of AI and machine learning. Well, this is not the sole solution but its role is crucial.

1) Data scarcity solutions:

In the context where real data is limited or sensitive, Synthetic data fills the gap, enabling more comprehensive AI training.

2) Model robustness:

By offering diverse scenarios, it enhances the AI models’ adaptability to real-world situations, boosting their robustness and accuracy.

3) Privacy preservation:

Synthetic data allows for the creation of data without risking personal information. It will help with privacy-sensitive domains.

However, it is not a complete replacement for real data, and ethical considerations, quality assurance, and potential biases remain topics of concern. Synthetic data’s integration alongside real data will likely shape the future of AI. 

Have a look at the image below, it presents the near future of Synthetic data generation.

synthetic data

image source


Synthetic data is an important concept for next-generation machine learning. Its significance lies in dealing with data scarcity, enhancing model robustness, and ensuring privacy. Synthetic data holds vast potential to reshape machine learning’s future by enabling diverse and scalable datasets. The journey of Synthetic data in machine learning is just beginning and promising the era of more accurate and privacy-conscious AI systems.


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What is an example of Synthetic data?


What is the difference between Synthetic data and dummy data?


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Can Synthetic data replace real data?

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Mr. Sanjay Singh Rajpurohit, An early-aged entrepreneur who always leads his team from the front and achieved success. As the founder & CEO of Technource, a top mobile app & Web development company, he made a global presence in a short time by offering custom software development, premium mobile apps, and website development services to global clients. In his free time, he loves writing. He is featured on Hackernoon, Dzone, Enlear Academy, Articlesfactory, and much more websites.

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