Why Synthetic Data Is Suddenly Everywhere
Synthetic data isn’t new as a concept, but its visibility in market research is. JT describes three forces that are pushing it forward at the same time: privacy and governance, commoditized analytics, and a growing obsession with efficiency and effectiveness.
1) Privacy and governance
Outside market research, synthetic data is often discussed as a way to analyze or share sensitive data with reduced privacy risk. Sectors like financial services have pushed that conversation into the mainstream, and parts of market research touch that world, especially anywhere personal information is handled upstream in the supply chain.
In market research itself, privacy has long been a core principle, but synthetic data still gets pulled into the conversation because governance expectations are rising everywhere.
2) Analytics is commoditized
Ten years ago, advanced modeling felt scarce. Now, the tools are broadly available. The same Python libraries, the same deep learning approaches, the same general techniques: most teams can access them, often cheaply.
Once methods become common, the advantage shifts to what you feed them. Data becomes the fuel, and the differentiator becomes data quality, richness, and readiness: how cleanly it can be used in models, how quickly it can be updated, how reliably it reflects reality.
That framing matters because it changes the synthetic data pitch. It’s not just “AI is here.” It’s “everyone has AI, so what makes your decisions better?” The answer comes back to data.
3) Efficiency and effectiveness
Synthetic data gets attention because it can change the economics of research. It can be far cheaper to generate than to collect new responses from real people. In a climate of compressed budgets, that’s an attractive promise.
But the more interesting argument is effectiveness: synthetic can help teams do more with the data they already collect. “For example, that could be where you add analytics on top of brand tracking or campaign tracking to give you more utility from the data that you already collect.”
That’s where synthetic starts to become interesting, not as a replacement for research, but as a way to extract more value from research you’re already doing – if you apply it thoughtfully.
And that “if” is exactly where misconceptions show up.