Sat. Dec 2nd, 2023
Synthetic Data: What it is and how it is used?

In today’s data-driven world, organizations across industries are always searching for ways to collect, analyze and utilize data in order to make informed decisions. Unfortunately, obtaining accurate information can be a challenge when dealing with sensitive or proprietary details – that’s where synthetic data comes in handy.

What is Synthetic Data?

Synthetic data is an artificial form of information created using statistical algorithms or machine learning techniques. This artificial information aims to replicate real-world patterns, structures and relationships while protecting the privacy and security of original sources. In this blog post we’ll take a closer look at what synthetic data is, how it’s generated, and how it’s utilized.

How Synthetic Data Is Generated

Synthetic data can be generated in several different ways depending on its intended use.

Synthetic data generation offers several methods, each with its own advantages and drawbacks.

Generative Adversarial Networks (GANs): GANs are a type of machine learning model composed of two neural networks: a generator and discriminator. The generator creates synthetic data designed to look as realistic as possible, while the discriminator attempts to differentiate between it and real data. With time, both parties become better at creating realistic scenarios while discriminating between fakes and real ones.

Variational Autoencoders (VAEs): VAEs are a type of machine learning model that can be employed to generate synthetic data. A VAE consists of an encoder which compresses real data into a lower-dimensional representation and decoder which reconstructs it from this compressed representation. By training their model on compressed representations of real data, VAEs can produce synthetic information similar to what was observed in reality.

Simulation: Simulation involves creating a computer model that replicates the behavior of an actual system. This model can then be used to generate synthetic data that looks exactly like what would be collected if collected from that real-world system. Simulation has applications in fields such as engineering, physics and economics.

Uses of Synthetic Data

Synthetic data offers several advantages over real-world information, such as privacy and security. By creating synthetic information that looks similar to the real data, organizations can still conduct analyses and make informed decisions without endangering the original source.

Cost Savings: Generating synthetic data can be more economical than collecting and managing actual information, particularly when the latter is difficult to obtain or there are legal or ethical obstacles to collecting the data.

Testing and Validation: Synthetic data can be utilized to test and validate models and algorithms before they are applied to real-world information. This helps identify potential issues, increasing their accuracy and dependability.

Research: Synthetic data can be utilized in research studies to control for variables and test hypotheses in a controlled setting.

Synthetic Data Challenges:

Synthetic data offers many advantages, but it also presents its share of challenges. Here are some key issues associated with synthetic data:

Representativeness: Synthetic data poses a unique challenge in that it must accurately replicate the real-world information it is designed to replicate. To accomplish this, an in-depth understanding of the data’s distribution, structure and relationships must be achieved. If this synthetic information is not representative of reality, inaccurate or biased results can occur.

Generalizability: Another challenge faced by synthetic data is its generalizability to new scenarios. This requires an in-depth comprehension of the processes and factors governing the data. Without this understanding, synthetic data may not be useful in predicting outcomes or making decisions in novel contexts.

Privacy Concerns: Synthetic data can help safeguard the privacy and security of real-world data, but there remains a risk that it could be reverse-engineered or reidentified if combined with other sources. Therefore, caution must be exercised in selecting methods for generating the synthetic data as well as how much anonymization is applied.

Quality Control: Generating high-quality synthetic data necessitates meticulous attention to detail and rigorous quality control processes. If the synthetic data is generated incorrectly, it could lead to inaccurate or biased results. Thus, quality control measures must be put in place in order to guarantee that the synthetic data generated is accurate, reliable, and trustworthy.

Ethical Considerations: Synthetic data poses ethical dilemmas regarding ownership and use, particularly when it comes to proprietary or sensitive information. It is essential to weigh the potential ethical repercussions before using synthetic information and take appropriate measures to protect the privacy and security of original data.


Synthetic data is an invaluable asset for organizations that need to collect and analyze data while safeguarding privacy and security. By creating synthetic data that looks statistically similar to real-world information, organizations can make informed decisions without putting sensitive information at risk. While there are various methods available for producing synthetic data, organizations must carefully determine which one best suits their specific needs.

By Hari Haran

I'm Aspiring data scientist who want to know about more AI. I'm very keen in learning many sources in AI.

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