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July 3, 2023

The Power of Synthetic Data: Revolutionizing Data Generation

Imagine a finance security expert who’s building a state-of-the-art fraud detection system. Or a medical researcher developing an early cancer detection model from medical imaging scans.  Both are working on vitally critical processes but each has the same challenge: limited, sensitive, or inaccessible real-world data.

Enter synthetic data for machine learning. Synthetic data is a powerful solution that helps people bridge data gaps by generating realistic and diverse datasets to fuel algorithms. It offers unlimited potential and benefits, as well as several challenges.

Common Use Cases for Synthetic Data

Training machine-learning models and data privacy and security testing are two common uses for synthetic data.

Training Machine Learning Models

Organizations can use synthetic data to train machine learning models when real data is limited or sensitive. By generating synthetic data that closely mimics real data’s characteristics and distributions, you can invest in and implement more extensive training and experimentation without data availability constraints or privacy concerns. This is particularly helpful in industries that deal with high volumes of sensitive data, such as healthcare and finance.

For instance, healthcare companies can use synthetic data to train models for personalized medicine, disease prediction, or drug discovery without accessing or compromising actual patient records.

Data Privacy and Security Testing

Today, it’s possible for organizations to create synthetic datasets that maintain the statistical properties and patterns of real data while obfuscating personally identifiable information (PII). They can then share these synthetic datasets with external parties or use them internally for testing purposes without the risk of exposing sensitive data.

For example, financial institutions can use synthetic data to evaluate their system’s vulnerability to cyberattacks. By creating artificial financial transactions that resemble real ones, they can mimic real attacks and assess existing security measures without putting customer data at risk.

Synthetic data generation tools provide a practical way to create useful facsimiles of sensitive data, such as patient journeys in healthcare and transaction data in finance. These datasets can be safely shared and collaborated on without risking privacy, loss of data utility, or regulatory non-compliance.

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What is Synthetic Data and Why is It So Important?

Synthetic data is precisely what it sounds like: artificially created data. A type of data augmentation, it’s typically generated with the help of algorithms and has many beneficial uses, including test data for new tools and products, model validation, and AI model training.

Examples of synthetic data sets include:

  • Image data. Synthetic image data sets are often used in computer vision tasks like segmentation, object recognition, and image classification. Using various techniques, they create realistic images that mimic real-world data. They can be particularly useful for training and evaluating models when real image data is limited or augmentation techniques are insufficient.
  • Text data. Synthetic text data sets are typically created for natural language processing (NLP) tasks like language translation, text generation, or sentiment analysis. Capable of being tailored to specific applications and scenarios, they can be used to generate sentences, paragraphs, or entire documents.
  • Sensor data. Synthetic sensor data sets simulate readings from various sensors like GPS devices, temperature sensors, or accelerometers. They’re useful in testing and evaluating algorithms or systems that process sensor data, such as the Internet of Things (IoT) applications.
  • Time series data. Synthetic time series data sets mimic ordinary patterns and trends found in real-world data. Common uses include training models in financial forecasting, stock market analysis, and energy consumption predictions.
  • Tabular data. Synthetic tabular data sets mimic structured data found in databases or spreadsheets. They’re often used for training models in customer relationship management, credit scoring, and fraud detection.

As these examples show, synthetic data sets can be applied to countless data types, allowing for extensive training, testing, and experimentation in scenarios where real data is unavailable.

How Businesses Benefit from Synthetic Training Data

Businesses can reap the benefits of training machine learning models in multiple ways:

  1. Automation and efficiency. Machine learning models automate repetitive tasks, streamline processes, and improve overall efficiency. These models perform what were once repetitive human tasks, saving businesses time and resources. For instance, real-time customer support chatbots powered by machine learning models handle common inquiries and free up human agents to focus on more complex or specialized tasks.
  2. Enhanced customer experience. Businesses looking to deliver personalized customer experiences use machine learning models to analyze customer preferences and behaviors to make recommendations, provide tailored suggestions, and anticipate customer needs. Results include greater customer satisfaction, increased engagement, and improved loyalty.
  3. Fraud detection and risk mitigation. Training machine learning models to detect fraudulent activities or suspicious patterns in real-time is invaluable to industries like finance, insurance, and cybersecurity. Models trained on historical fraud cases allow businesses to identify potential risks, mitigate fraud, and enhance security measures.
  4. Improved decision-making. Because machine learning models can analyze large volumes of data, they can identify patterns, trends, and correlations much more quickly and accurately than humans. Organizations gain useful insights to inform decision-making processes, including predicting customer preferences, optimizing inventory management, and personalizing marketing campaigns.
  5. Predictive analytics and forecasting. Businesses can train models to anticipate market trends, customer behavior, demand patterns, or other variables relevant to their operations, enabling them to make predictions and forecasts based on historical data.
  6. Product and service improvements. By analyzing customer feedback, usage data, and market trends, businesses can train machine learning models to identify product or service improvement opportunities. The models are able to pinpoint common issues, uncover customer complaint patterns, and suggest enhancements to product development efforts.

Other ways companies are meeting real-life challenges with synthetic data projects include using synthetic geolocation data to improve insurance pricing, generating synthetic customer datasets to enhance shopping experiences, and training algorithms to enable safer and more reliable self-driving cars.

How Synthetic Data is Revolutionizing Data Generation

Synthetic data generation is emerging as a groundbreaking solution, transforming and reshaping how businesses across multiple industries approach data-intensive tasks.

  • Accelerating development cycles. Traditional data management can be time-consuming and resource intensive. Synthetic data generation speeds the process, automating data set creation with desired characteristics and accelerating the machine learning model development cycle.
  • Data augmentation. Organizations can use synthetic data as a complementary technique, increasing limited or uneven real data sets.
  • Data availability and diversity. Synthetic data can be used to overcome data scarcity and availability limitations, particularly in cases where acquiring large and diverse real-world data is challenging due to cost, legal restrictions, or limited access.
  • Privacy protection. An increased emphasis on data privacy and regulations, such as the General Data Protection Regulation (GDPR), makes synthetic data a practical privacy-preserving alternative. Organizations can generate synthetic data that retains statistical properties and patterns of real data but without disclosing PII, allowing them to comply with privacy regulations while still leveraging data for analysis, model training, or sharing.
  • Scenario testing and robustness evaluation. Organizations that want to create specific scenarios or edge cases that might be rare or difficult to experience in real data can use synthetic data instead to evaluate their models more comprehensively. This helps identify a model’s potential weaknesses, limitations, or biases so improvements can be made.
  • Transfer learning and pre-training. Synthetic data is extremely helpful for pre-training or transfer learning purposes. Businesses can train models on synthetic data before fine-tuning them with real data, something that’s especially useful in cases where obtaining labeled real data is challenging or expensive.

Unlocking Synthetic Data’s Full Potential

To fully unleash synthetic data’s potential and transformative capabilities, modern businesses require a holistic approach that goes beyond mere data generation. The Velotix platform is an innovative tool that seamlessly integrates advanced algorithms and customizable features to generate high-quality synthetic datasets that precisely mimic real-world scenarios.

Organizations can use Velotix to optimize model training, improve predictive accuracy, and accelerate development cycles, all while maximizing business outcomes and staying compliant. Your business remains at the forefront of data-driven innovation and maintains its competitive edge by unlocking new insights and driving transformative outcomes. Synthetic data’s possibilities are truly endless.

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