Synthetic Data

Data created by a program, often an AI model, instead of collected from real people or events, used to train or test other systems.

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AI & Automation

In plain English

Real data can be scarce, expensive or private. Synthetic data fills the gap with realistic made-up examples, like fake customer records or practice questions, so teams can train and test without exposing real people.

Example

A bank generates millions of fake but realistic transactions, including rare fraud patterns, to train its fraud checks without touching real customers' accounts.

In short

Made up on purpose. Realistic fake data used to train and test AI.

Why it matters

AI labs are running short of fresh real-world text, so synthetic data is a growing part of how new models are trained. It also helps with privacy rules and rare situations. The risk is that mistakes in the data generator get copied into the next model.

Common confusion

Synthetic data vs. hallucination. Both are "made up," but synthetic data is created on purpose, labeled as such and checked before use. A hallucination is an AI accidentally presenting something false as fact.

Sources

  1. IBM: What Is Synthetic Data?