Trend Watch: Synthetic Data

The newest type of synthetic data is generated using AI-based methods. This approach to data generation reportedly offers advantages over data produced by more entrenched methods - namely, in the areas of privacy, efficiency, and scalability. These benefits are driving the current interest in synthetic data among financial services industry firms. Our research on AI-generated synthetic data shows that concrete use cases for this data exist for wealth and asset management organizations. However, the use cases are narrower than much of the current industry hype would have us believe.