SDAIA study highlights role of synthetic data in AI development

The Saudi Data and AI Authority (SDAIA) has published a comprehensive study titled "Synthetic Data: Opportunities, Challenges, and Governance Mechanisms," which examines the significant role synthetic data plays in advancing artificial intelligence (AI) applications and fostering innovation across diverse sectors. The report outlines how synthetic data, which mimics the statistical properties of real-world datasets, can address issues of data scarcity and high collection costs, thus enabling the creation of more efficient technological solutions while bolstering privacy protection and promoting data sharing.

SDAIA's research underscores the utility of synthetic data in sectors dealing with sensitive information, such as healthcare and financial services. By accelerating innovation and reducing costs, synthetic data facilitates responsible data sharing. The study delves into the creation of synthetic data, distinguishing between fully synthetic, partially synthetic, and hybrid data types based on their reliance on real data.

Additionally, it highlights synthetic data's potential to improve the representation of underrepresented groups in datasets, thereby reducing inherent bias.

The study stresses the necessity of implementing both technical and regulatory controls to maintain data quality and privacy safeguards. It advocates for rigorous risk assessment and data quality testing to strike a balance between privacy preservation and the realization of synthetic data's benefits. Saudi Arabia's initiative to establish an integrated national data ecosystem and regulatory frameworks is showcased, alongside the development of experimental environments to encourage the responsible use of emerging technologies.

The study provides a roadmap for implementing synthetic data effectively, anchored in specific usage objectives, governance and accountability frameworks, risk management, quality assurance, transparency, source traceability, and harnessing regulatory sandboxes. This initiative aligns with SDAIA's broader mission to disseminate knowledge about emerging technologies and enforce responsible practices within the data and AI ecosystem.

This effort is part of the declaration of 2026 as the Year of Artificial Intelligence and contributes to the realization of Saudi Vision 2030 objectives. The complete study can be accessed at the following link: https://sdaia.gov.sa/ar/MediaCenter/KnowledgeCenter/ResearchLibrary/synthetic-data.pdf.