Synthetic Data (Compliance Use)

Synthetic Data for compliance purposes is artificially generated data that mimics the statistical properties of real data without containing actual personal information. Compliance applications include:

• Bias testing: Creating representative datasets for fairness audits without using real protected class data
• Regulatory reporting: Demonstrating AI performance without exposing sensitive information
• Third-party audits: Enabling external review without data sharing risks
• Training data gaps: Supplementing underrepresented groups in training data

Regulatory considerations:

• Synthetic data may not be "personal data" under privacy laws if properly generated
• Quality of synthetic data affects validity of compliance testing
• Documentation of synthetic data generation is important for audit trails