Everybody is searching for new ways to utilize artificial intelligence to enhance operations. AI will never replace human workers completely, but there are ways to optimize workflows by combining AI and humans. AI-generated artificial data is a growing trend that could replace organic business information one day.
However, this recent development begs an essential question — is this synthetic data effective? When you’re running a business, it’s only natural that you want to use the latest technology. However, it is important to understand how it functions first. This will allow you to save the maximum amount of money while still adapting your business model.
What is synthetic data?
Organizations rely instead on synthetic data generated by AI or computers. A program can collect information from real-life events or survey results, rather than relying on in-person data. It can prove to be a valuable tool as new data privacy laws come into effect. This allows companies to analyze things without risking their customer’s information. As governments clamp down on threats against personal data, this solution may be necessary.
You might even gain from the use of synthetic data earlier rather than later. Gartner predicts that 60% of information used for AI model training or analysis will be synthesized by 2024. As people become more concerned about their privacy and as cybercriminals develop new methods to penetrate your security, it becomes increasingly important to keep information secure. Synthetic data will be used instead of regular information.
Synthetic Data Can Replace Real World Data
The use of synthetic data can replace the real thing, though it may not be as accurate. Scientists in a study by 2020 created synthetic data using 19 different sets of information. They then trained AI models on both the real and synthetic data to determine which one was most accurate. Scientists stated that 92% of models trained using synthetic data are less accurate than those trained with real data. However, they said these minor differences were not significant. The scientists believe that these deviations will become less significant over time.
A second research team, from Massachusetts Institute of Technology (MIT) and Boston University, conducted its own study. They came up with different conclusions. The team created 150,000 synthetic videos to train an AI model. The researchers found that algorithms which learned using synthetic data performed better than those who used real information. This research, published in 2022 shows how the technology has improved to create even better synthetic information in just a few short years.
You can bring many benefits to your company by using synthetic data. You should also be aware of any current problems. The data is accurate when compared with the original data. However, it is still possible to create a set of synthetic data that does not accurately reflect reality. It could also incorporate biases that it has learned from organic data. Verifying the accuracy of data will require work before it can be used.
Synthetic data: Benefits
It is understandable that you might be wondering what benefits synthetic data could bring to your company, since it’s a great alternative for real information. You can use these data sets to improve both your own and your employee’s workflow.
1. Reduce staff turnover
At the moment, about 50% of workers are concerned more with their work culture than their pay. The people want to be challenged and work in an environment where they are able to thrive. 62% of IT staff say that they are emotionally and physically exhausted, while 42% have such high levels of burnout they consider quitting within the next six month.
The generation of information from synthetic data is instantaneous, which allows the team to focus on more important tasks. IBM reported that Deloitte cut the time required to prepare management reports by five to eight working days, allowing five analysts to focus on high-value tasks. By giving your staff more time for critical work, rather than sorting through AI data to train them, you can improve the company culture, reduce turnover and decrease burnout.
2. Enhancing Scalability
Synthetic data is highly scaleable because it can produce information rapidly and widely. AI models need thousands of pieces to train. Often, a minimum of a 1,000 data items are needed for each category. It can take a long time for your employees to manually collect all the data. Synthetic data is much easier to populate, and allows for a faster scale than you can with organic data.
3. Data privacy is a must-have.
As countries implement regulations on data collection from consumers, the scarcity of information is expected to become a major issue. It is necessary to perform analysis and train AI models to help with marketing. The synthetic data is similar to the original data, which removes people from the equation. This allows you to use their data and not expose them.
This can serve two beneficial purposes — helping you comply with privacy laws and assuring customers a hacker can’t compromise their sensitive information. This can save you money on legal fees for improper business practices. It will also encourage more customers to patronize your company and help prevent loss from consumers who leave after a data breach.
Synthetic Data: A Way to Enhance Business Performance
The use of synthetic data in corporate workflows is relatively recent, but has proven effective. The technology can help improve employee experiences, scale your business and comply with the ever-growing number of privacy laws. It’s important to keep up with the latest technology and understand how it can benefit your organization.