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Boosting Data Analytics With Synthetic Volume Expansion

Synthetic data generation, a cornerstone of Generative Artificial Intelligence, promotes a paradigm shift in data science by addressing data scarcity and privacy while enabling unprecedented performance. As synthetic data becomes more prevalent, concerns emerge regarding the accuracy of statistical methods when applied to synthetic data in contrast to raw data. This article explores the effectiveness of statistical methods on synthetic data and the privacy risks of synthetic data. Regarding effectiveness, we present the Synthetic Data Generation for Analytics framework. This framework applies statistical approaches to high-quality synthetic data produced by generative models like tabular diffusion models, which, initially trained on raw data, benefit from insights from pertinent studies through transfer learning. A key finding within this framework is the generational effect, which reveals that the error rate of statistical methods on synthetic data decreases with the addition of more synthetic data but may eventually rise or stabilize. This phenomenon, stemming from the challenge of accurately mirroring raw data distributions, highlights a "reflection point"-an ideal volume of synthetic data defined by specific error metrics. Through three case studies, sentiment analysis, predictive modeling of structured data, and inference in tabular data, we validate the superior performance of this framework compared to conventional approaches. On privacy, synthetic data imposes lower risks while supporting the differential privacy standard. These studies underscore synthetic data's untapped potential in redefining data science's landscape.

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