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Home » 3 Questions: The pros and cons of synthetic data in AI

3 Questions: The pros and cons of synthetic data in AI

Tarun Khanna by Tarun Khanna
September 4, 2025
in Artificial Intelligence, Machine Learning
Reading Time: 5 mins read
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3 Questions: The pros and cons of synthetic data in AI

Photo Credit: https://techxplore.com/

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Synthetic data are artificially created through algorithms to resemble the statistical features of actual data, without including any information from real-world sources. While real numbers are hard to pin down, a few analysis assist that more than 60% of data utilized for AI programs in 2024 was synthetic, and this determine is predicted to increase across industries.

Because synthetic data don’t comprise real-world information, they maintain the promise of protect privacy whilst decreasing the cost and boosting the speed at which new AI models are formed. But using synthetic data needs careful evaluation, planning, and checks and balances to prevent loss of overall performance while AI models are placed.

To unpack some pros and cons of the utilizing of synthetic data, MIT News spoke with Kalyan Veeramachaneni, a principle research scientist within the Laboratory for Information and Decision Systems and co-founder of  DataCebo whose open-core platform, the Synthetic Data Vault, enables users create and test synthetic data.

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Q: How are synthetic data generated?

A: Synthetic data are algorithmically generated however do not come from a real circumstance. Their value lies in their statistical resemblance to real data. If we’re speaking about language, as an example, synthetic data appearance much as if a human had written those sentences. While researchers have generated synthetic data for a long period of time, what has modified in the past few years is our capability to construct generative models out of data and utilize them to generate realistic synthetic data. We can take a little bit of real data and construct a generative model from that, which we can use to generate as a lot of synthetic data as we need. Plus, the model generates synthetic data in a way that gains all of the basic rules and infinite patterns that remains within the real data.

There are basically four different kinds of data modalities: language, video or images, audio, and tabular data. All four of them have a little different methods of constructing the generative models to generate synthetic data. An LLM, for instance, is not anything but a generative model from which you are examining synthetic data when you ask it a question.

A lot of language and images data are openly available on the internet. But tabular data, that is the data amassed while we connect with physical and social systems, is often locked up behind the corporation firewalls. Much of it is sensitive or private, including consumer transactions saved by way of bank. For this type of data, platforms just like the Synthetic Data Vault offer software that may be utilize to construct generative models. Those models then generate synthetic data that hold client privacy and can be shared more extensively.

One powerful thing about this generative modeling technique for synthesizing data is that organizations can now construct a custom designed, local model for their own data. Generative AI automates what used to be a manual process.

Q: What are a few advantages of using synthetic data, and which use-cases and applications are they mainly well-suited for?

A: One main application which has increased vastly during the past decade is using synthetic data to test software applications. There is data-driven logic behind many software applications, so that you want data to test that software program and its functionality. In the past, humans have resorted to manually creating data, however now we are able to use generative models to generate as much as we require.

Users can also generate particular data for application testing. Say I work for an e-commerce corporation. I can create synthetic data that imitates real customers who live in Ohio and made transactions relating to at least one particular product in February or March.

Because synthetic data aren’t drawn from real situations, they are also privacy-maintaining. One of the biggest troubles in software testing has been getting access to sensitive real data for testing out software in non-manufacturing environments, because of privacy worries. Another on the spot advantage is in performance testing. You can generate a billion transactions from a generative model and take how fast your system them.

Another application in which synthetic data preserve numerous promise is in training machine-learning models. Sometimes, we want an AI model to support us expect an event that is less frequent. A bank might also need to use an AI model to anticipate fraudulent transactions, but there can be too few real examples to train a model that can perceive fraud accurately. Synthetic data offer data augmentation — extra data examples that are just like the real data. These can notably enhance the accuracy of AI models.

Also, once in a while customers don’t have time or the financial assets to collect all of the data. For example, gathering data about customer cause could need carrying out many surveys. If you come to be with limited data and then try and train a model, it won’t carry out nicely. You can increase via adding synthetic data to train those models better.

Q: What are some of the risks or potential pitfalls of using of synthetic data, and are there steps users can take to prevent or reduce those problems?

A: One of the biggest questions people often have in their minds is, if the data are synthetically generated, why ought I believe them? Evaluating whether or not you can agree with the data often comes down to comparing the overall system in which you are using of them.

There are a lot of features of synthetic data we had been able of compare for a long term. For example, there are present technique to measure how close synthetic data are to real data, and we are able to measure their quality and whether they hold privacy. But there are different essential issues if you are using the those synthetic data to train a machine-learning model for a new use case. How might you recognize the data are going to lead to models that still make valid conclusions?

New efficacy metrics are rising, and the emphasis is now on efficacy for a particular venture. You must truly dig into your procedure to ensure the synthetic data you add to the system still can help you draw valid conclusions. That is something that have to be executed carefully on an application-by-application basis.

Bias also can be an trouble. Since it’s generated from a small quantity of real data, the same bias that exists in the real data can deliver over into the synthetic data. Just like with real data, you would need to purposefully ensure the bias is removed by distinct sampling methods, which can generate balanced datasets. It takes a few careful making plans, but you could calibrate the data generation to prevent the proliferation of bias.

To assist with the evaluation system, our group generated the Synthetic Data Metrics Library. We concerned that people would use synthetic data of their environment and would provide different conclusions within the real world. We generated a metrics and evaluation library to make sure checks and balances. The machine learning community has confronted a number of demanding situations in making sure models can generalize to new situation. The use of synthetic data adds an entire new dimension to that trouble.

I expect that the old systems of operating with data, whether or not to build software applications, solution analytical questions, or train models, will dramatically change as we get greater sophisticated at constructing those generative models. A lot of factors we have by no means been able to do before will now be possible.

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Tarun Khanna

Tarun Khanna

Founder DeepTech Bytes - Data Scientist | Author | IT Consultant
Tarun Khanna is a versatile and accomplished Data Scientist, with expertise in IT Consultancy as well as Specialization in Software Development and Digital Marketing Solutions.

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