← AI Glossary

Synthetic Data

Artificially generated data that preserves the statistical properties of real data without containing actual personal information, used to protect privacy while enabling AI development.

In plain language

Fake but realistic data generated by computers. Instead of using real patient records to train a medical AI, you create artificial patient records that have the same patterns but are not real people.

Why this matters

Synthetic data is a strategic tool for responsible AI development in Australia. It enables organisations to train and test AI systems without exposing real personal data, supporting both Privacy Act compliance and innovation at scale. It is particularly valuable for regulated sectors such as healthcare and financial services.

Relevance

Implementation

Provides a practical technique to enable AI development and testing while managing privacy risk, supporting compliance with Australian privacy requirements and responsible AI principles.

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