SDAIA study highlights role of synthetic data in AI development

The Saudi Data and Artificial Intelligence Authority (SDAIA) has released a study titled "Synthetic Data: Opportunities, Challenges, and Governance Mechanisms," exploring the role of synthetic data in advancing AI applications and driving innovation across various sectors.

The study explains that synthetic data provides datasets that mimic the statistical properties of real data, helping to address challenges such as data scarcity and high collection costs. It supports the development of more efficient technological solutions while enhancing privacy protection and facilitating data sharing.

The report highlights the use of synthetic data in sensitive sectors such as healthcare and financial services, emphasizing its role in accelerating innovation and reducing costs, while ensuring privacy requirements are met.

The study reviews the methodology for creating synthetic data and its various types, including fully synthetic, partially synthetic, and hybrid data, depending on the reliance on real data. It also notes the role of synthetic data in improving the representation of underrepresented groups in datasets and reducing bias.

The study stresses the need to apply technical and regulatory controls to ensure data quality and privacy protection, highlighting the importance of risk assessment and data quality testing to balance privacy with intended benefits.

It also showcases Saudi Arabia's efforts to build an integrated national data ecosystem and develop regulatory frameworks and experimental environments to promote the responsible use of emerging technologies.

The study presents a roadmap for adopting synthetic data based on usage objectives, governance and accountability frameworks, risk management, quality assurance, transparency, source traceability, and leveraging regulatory sandboxes.

This study is part of SDAIA's efforts to promote knowledge of emerging technologies and establish responsible practices in the data and AI ecosystem, in line with the declaration of 2026 as the Year of Artificial Intelligence and in support of Saudi Vision 2030 goals.

The full study is available at: https://sdaia.gov.sa/ar/MediaCenter/KnowledgeCenter/ResearchLibrary/synthetic-data.pdf.