What is Synthetic Data?
Synthetic data is artificially generated information that mimics the statistical properties and patterns of real data without containing actual client or business records. In financial services, synthetic data is used to train and test AI models without exposing sensitive client information, addressing privacy concerns and regulatory requirements around data protection. High-quality synthetic data maintains the characteristics of real adviser-client conversations or compliance scenarios, enabling robust model development whilst preserving confidentiality.
Synthetic Data in financial services
Financial services firms use synthetic data to develop and test AI without exposing real client records, helping manage data protection obligations. It still needs checking, because synthetic data that does not reflect real customers can produce models that perform poorly or unfairly in practice.