Synthetic Data: The New Gold Mine for AI Behemoths

Feb 22, 2025

GenAI is advancing at breakneck speed, pushing industry giants into an escalating data conundrum. Confronted with mounting constraints – scarce high-quality data, intensifying privacy scrutiny, and rising costs – AI companies are leaning towards synthetic data generation as a pragmatic solution, transforming it from a niche experiment to a strategic necessity. Counterpoint projects that in the next 1-3 years, synthetic data will account for over 70% of AI training datasets, with adoption surging even higher in autonomous driving and robotics, where real-world data is both scarce and costly. This is a fundamental shift in how AI models are trained and scaled, redefining the role of data in the AI development pipeline.

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Author

Wei Sun

Wei is a Principal Analyst in Artificial Intelligence at Counterpoint. She is also the China founder of Humanity+, an international non-profit organization which advocates the ethical use of emerging technologies. She formerly served as a product manager of Embedded Industrial PC at Advantech. Before that she was an MBA consultant to Nuance Communications where her team successfully developed and launched Nuance’s first B2C voice recognition app on iPhone (later became Siri). Wei’s early years in the industry were spent in IDC’s Massachusetts headquarters and The World Bank’s DC headquarters.