Synthetic Data in Action:

Inspiring Use Cases that Transform Industries, part 1


Valentin Ober, Managing Partner at Automators

10 min readJul 31 2023


In today’s data-driven world, the demand for high-quality data to power innovative technologies has grown exponentially. However, many industries face challenges in accessing and utilizing sensitive or scarce data without compromising privacy and security. This is where synthetic data emerges as a powerful solution.

The importance of synthetic data lies in its ability to overcome critical barriers that traditional data collection methods encounter. It enables organizations to access large and diverse datasets without compromising the privacy of individuals or violating data regulations. You can read how synthetic data help protect sensitive information here. By using synthetic data, industries can leverage sophisticated machine learning and artificial intelligence technologies, ultimately driving innovation and making more informed decisions.

In this blog post, we will explore the significance of synthetic data in various industries, and how it is transforming the way organizations operate. This blogpost consists of two parts, in today’s first part we will look at the use cases of synthetic data in healthcare industry, financial services sector and autonomous vehicles and transportation sector.


Healthcare Industry

Use case 1: Advancing Medical Research and Drug Development

How Synthetic Data Enables the Sharing of Sensitive Medical Information

Medical research often involves the analysis of sensitive patient data, raising concerns about privacy and data protection. Synthetic data offers a game-changing solution by allowing researchers to work with realistic datasets without accessing real patient information directly. With synthetic data, algorithms can generate representative medical datasets that maintain the statistical characteristics and complexities of real data while removing any identifiable details. This enables researchers to share and collaborate on datasets more freely, fostering scientific advancements without compromising patient privacy.

Accelerating Drug Discovery and Personalized Medicine

The drug development process demands vast amounts of data to identify potential drug targets and evaluate treatment efficacy. Synthetic data plays a vital role by simulating diverse patient profiles and disease scenarios, facilitating comprehensive preclinical studies. Researchers can use this synthetic data to validate hypotheses, optimize drug designs, and predict treatment outcomes, significantly reducing the time and resources required for traditional drug development. Moreover, in the era of personalized medicine, synthetic patient data enables the creation of virtual patient cohorts, supporting the design of tailored treatments based on individual characteristics, genetics, and medical history.

Use case 2: Improving AI-driven Diagnostics and Medical Imaging

Ensuring Patient Privacy While Training AI Models

The application of AI in diagnostics and medical imaging holds enormous potential to improve healthcare outcomes. However, training AI models often necessitates access to vast amounts of real patient data, raising privacy concerns. Synthetic data addresses this challenge by generating large-scale, realistic medical imaging datasets without compromising patient privacy. By using synthetic data, medical institutions can train AI models to accurately detect diseases, interpret images, and make diagnoses without ever using identifiable patient information, ensuring compliance with stringent data protection regulations.

Enhancing the Accuracy of Diagnostic Systems Using Synthetic Data

AI-driven diagnostic systems rely heavily on diverse and extensive datasets to achieve high levels of accuracy. In cases where real-world datasets may be limited or imbalanced, synthetic data can be used to augment the training data, enabling AI models to learn from a more diverse range of scenarios. This results in improved diagnostic accuracy, especially in detecting rare or uncommon medical conditions. By enriching the training data with synthetic samples, AI-driven diagnostic systems become more robust and capable of handling a broader spectrum of medical cases, ultimately enhancing patient care and diagnostic outcomes.

The healthcare industry’s adoption of synthetic data demonstrates its potential to revolutionize medical research, drug development, and diagnostic practices. By leveraging synthetic data’s unique capabilities, healthcare professionals can push the boundaries of innovation while safeguarding patient privacy and data security. As the technology continues to evolve, synthetic data is expected to play an increasingly pivotal role in shaping the future of healthcare.


Financial Services Sector

Use case 3: Risk Assessment and Fraud Detection

Utilizing Synthetic Data for Stress Testing and Scenario Analysis

In the financial services sector, stress testing and scenario analysis are critical components of risk assessment. Stress tests involve subjecting financial systems and portfolios to simulated adverse market conditions to evaluate their resilience. Scenario analysis, on the other hand, explores the potential impact of various economic scenarios on the institution’s financial health.

Synthetic data proves invaluable in these risk assessment practices, as it allows financial institutions to generate diverse and extensive datasets that encompass a wide range of market conditions and risk scenarios. By leveraging synthetic data to simulate economic downturns, market fluctuations, and other adverse events, risk managers can better prepare for potential challenges and assess the robustness of their strategies. This enables them to make well-informed decisions to safeguard the institution’s stability and protect investors’ interests.

Protecting Customer Data While Training Fraud Detection Algorithms

Fraud detection is a top priority for financial institutions as they strive to protect their customers and maintain the integrity of financial transactions. However, training machine learning models for fraud detection typically requires a significant amount of real transactional data, which could expose customers’ sensitive information to potential security breaches.

Synthetic data emerges as a secure alternative, enabling the creation of realistic yet artificial transactional data for training fraud detection algorithms. By leveraging synthetic data, financial institutions can maintain the privacy and confidentiality of their customers’ data while still ensuring the effectiveness of their fraud detection systems. This approach ensures compliance with data protection regulations and reinforces the customers’ trust in the institution’s commitment to their privacy and security.

Use case 4: Personalized Financial Advice and Customer Profiling

How Synthetic Data Enables Customization Without Exposing Sensitive Information

Delivering personalized financial advice and services to customers is a key differentiator for financial institutions. However, achieving personalization often requires access to substantial amounts of customer data, including personal financial information and transaction histories. This raises concerns about data privacy and the potential misuse of sensitive data.

By utilizing synthetic data, financial institutions can create artificial customer profiles that accurately represent various customer segments without compromising individual privacy. This synthetic customer data allows institutions to offer tailored financial advice, personalized product recommendations, and targeted marketing campaigns while ensuring customer confidentiality and data security.

Enhancing Customer Experience and Trust in Financial Services

In the highly competitive financial services sector, customer experience and trust are paramount. By harnessing synthetic data for customer profiling and personalization, financial institutions can enhance the overall customer experience. Tailored financial advice, products, and services resonate better with customers, leading to improved satisfaction and loyalty.

Moreover, the use of synthetic data reinforces customer trust in the institution’s commitment to data privacy and security. Customers are more likely to engage with a financial institution that respects their privacy and safeguards their sensitive information, leading to stronger, long-lasting relationships and increased customer retention.

By leveraging the power of synthetic data, financial institutions can optimize risk management practices, protect customer data, deliver exceptional customer experiences, and foster stronger customer trust. As the sector evolves, synthetic data will play an increasingly important role in changing financial services and redefining the customer-centric landscape.


Autonomous Vehicles and Transportation

Use case 5: Training Self-Driving Cars and AI-Based Traffic Control

Overcoming Limitations of Real-World Data Collection

Training self-driving cars and developing AI-based traffic control systems demand access to vast amounts of diverse and real-world driving data. However, collecting such data can be challenging, time-consuming, and expensive. Real-world data collection also faces limitations in capturing rare and potentially dangerous scenarios, limiting the effectiveness of autonomous vehicle algorithms.

Synthetic data presents an innovative solution to these challenges. By generating diverse and realistic driving scenarios through synthetic data, developers can overcome the limitations of real-world data collection. These synthetic scenarios enable comprehensive training of self-driving car algorithms in a safe and controlled environment, including scenarios that are rarely encountered in real-world driving. As a result, autonomous vehicles can be better prepared to handle complex and challenging situations, making them safer and more reliable for real-world deployment.

Simulating Various Driving Scenarios for Comprehensive Training

Creating a robust self-driving car algorithm requires exposure to an extensive array of driving scenarios. Synthetic data facilitates the generation of a wide range of simulated driving situations, including adverse weather conditions, road construction, emergency maneuvers, and interactions with other vehicles and pedestrians. These diverse scenarios allow self-driving car systems to adapt and respond to a multitude of real-world situations effectively.

Moreover, synthetic data allows for iterative testing and continuous improvement of self-driving algorithms without posing risks to human drivers or pedestrians. By leveraging synthetic data, developers can fine-tune algorithms more efficiently, accelerating the development of safe and reliable autonomous vehicles.

Use case 6: Urban Planning and Infrastructure Optimization

Using Synthetic Data to Model Traffic Flow and Pedestrian Behaviour

Efficient urban planning and infrastructure optimization depend on a thorough understanding of traffic flow, pedestrian behaviour, and other complex urban dynamics. However, gathering comprehensive real-world data for large cities can be logistically challenging and time intensive.

Synthetic data offers a powerful approach to model traffic flow and pedestrian behaviour in urban environments. By generating synthetic datasets that accurately represent the characteristics of a specific city, urban planners can conduct detailed simulations and analyse different scenarios. This synthetic data-driven approach helps identify potential traffic congestion points, pedestrian safety concerns, and transportation bottlenecks.

Enhancing City Planning and Minimizing Congestion

By using synthetic data, urban planners can test different strategies and infrastructure changes virtually before implementing them in the real world. This proactive approach allows cities to optimize traffic management, design efficient transportation networks, and make data-driven decisions to minimize congestion and improve overall mobility.

Moreover, synthetic data empowers cities to plan for future growth and assess the impact of urban expansion on transportation systems. By simulating the effects of population growth, changes in land use, and infrastructure development, cities can ensure that their long-term plans are well-equipped to handle increased demands on transportation and mobility.

In summary, synthetic data plays an important role in advancement of autonomous vehicles and transformation of transportation systems. By training self-driving cars and AI-based traffic control systems with diverse and realistic scenarios, synthetic data ensures safer and more efficient autonomous vehicle technologies. Additionally, in urban planning and infrastructure optimization, synthetic data-driven simulations empower cities to make informed decisions, improve traffic management, and create sustainable transportation solutions for the future.


Throughout this exploration, we have witnessed the remarkable versatility of synthetic data in various industries - healthcare industry, financial services sector and autonomous vehicles and transportation sector.

Synthetic data represents a groundbreaking technological solution that addresses critical challenges in data privacy, access, and security. By generating realistic data without relying on real-world information, it unlocks opportunities for innovation, machine learning, and artificial intelligence on a scale previously unattainable. The ability to create vast and diverse datasets for testing, training, and modeling enhances the accuracy, reliability, and efficiency of AI-driven applications. Synthetic data empowers organizations to push boundaries, make data-driven decisions, and accelerate advancements that positively impact society, thereby transforming industries and driving progress in unprecedented ways.

In conclusion, synthetic data is a game-changing technology that empowers industries to innovate, optimize, and revolutionize their practices. From healthcare to finance, transportation, and beyond, synthetic data is redefining the boundaries of what is possible. As we embark on this transformative journey, let us embrace the power of synthetic data responsibly and collaboratively, embracing its potential to shape a better and data-driven world for all.

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