Synthetic Data

Category: Emerging Concepts

Definition

Synthetic data is artificially generated information that mimics real data without containing actual personal or sensitive information.

How It Works

AI creates fake but realistic data based on patterns in real datasets. A model might generate thousands of fake customer records that look real but don't represent actual people.

The synthetic data follows the same statistical patterns as real data without privacy risks.

Why It Matters

Synthetic data solves privacy problems in AI development. Companies can train models without exposing customer information or violating regulations.

It also helps when real data is scarce or expensive to collect.


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