RIYADH: A new study by the Saudi Data and Artificial Intelligence Authority has highlighted how synthetic data could help accelerate AI development while emphasizing the need for safeguards to protect privacy and ensure reliability. The study, “Synthetic Data: Opportunities, Challenges, and Governance Mechanisms,” explores the use of artificially generated data that mirrors the patterns and characteristics of real-world information. Such data can be used to train and test AI systems without relying entirely on actual datasets. According to the authority, synthetic data could help tackle one of the biggest challenges in AI development: access to large amounts of high-quality data. Creating artificial datasets can reduce the time and cost involved in collecting and preparing information, while also making it easier for organizations to share data and develop new AI applications. The technology could be particularly useful in sectors such as healthcare and financial services, where strict privacy rules can limit access to real-world information. By using synthetic data, organizations may be able to develop and test new tools while reducing their reliance on sensitive personal data. The study identifies three main types of synthetic data: fully synthetic data created entirely by AI or computer models, partially synthetic data in which some real information is replaced, and hybrid datasets that combine both real and synthetic information. The authority also highlighted the technology’s potential to make AI systems fairer. By generating additional data for groups that may be underrepresented in existing datasets, synthetic data could help reduce bias and improve the performance of AI models. However, the authority warned that synthetic data is not a complete solution to privacy and accuracy concerns. According to the study, artificial datasets can still reflect biases found in the original data used to create them. In some cases, there may also be a risk that individuals could be identified if the data is not generated and managed properly. To address those risks, the authority said organizations should conduct regular assessments, testing and quality checks to ensure synthetic data is reliable and suitable for its intended use. The study also set out a roadmap for responsible adoption, including clear rules on how synthetic data is used, systems for oversight and accountability, standards to verify quality, and measures to ensure transparency about where data comes from and how it is generated. It also highlighted regulatory sandboxes, controlled environments where new technologies can be tested safely before wider deployment. The Saudi Data and AI Authority said these measures can help organizations benefit from innovation while maintaining privacy protections and public trust. The authority positioned synthetic data as part of Saudi Arabia’s broader efforts to build a strong national data ecosystem and encourage the responsible use of emerging technologies. It added that the study supports ongoing work to strengthen the Kingdom’s AI capabilities as part of Vision 2030 and the designation of 2026 as the Year of Artificial Intelligence.