The promise and perils of synthetic data | TechCrunch
Briefly

AI systems, being statistical machines, rely on massive examples of well-annotated data to learn patterns and make predictions, as seen in various model training efforts.
The market for AI data annotation services has grown significantly, currently valued at $838.2 million, and is projected to reach $10.34 billion in the next decade.
Synthetic data, increasingly sourced from AI-generated outputs, raises questions about its effectiveness compared to real data in training AI systems.
As new real data becomes scarce, companies like Anthropic and OpenAI are turning to AI-generated data for training their models, exploring the potential of synthetic data.
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