Rethinking Synthetic Data definitions: A privacy driven approach

Synthetic data is gaining traction as a cost-effective solution for the increasing data demands of AI development and can be generated either from existing knowledge or derived data captured from real-world events. The source of the synthetic data generation and the technique used significantly impacts its residual privacy risk and therefore its opportunity for sharing. Traditional classification of synthetic data types no longer fit the newer generation techniques and there is a need to better align the classification with practical needs. We suggest a new way of grouping synthetic data types that better supports privacy evaluations to aid regulatory policymaking. Our novel classification provides flexibility to new advancements like deep generative methods and offers a more practical framework for future applications.