Large language models (LLMs) have gained significant attention in the field of artificial intelligence. These models are trained on vast amounts of text data, often obtained through web scraping. However, the collection and labeling of such massive quantities of data can be expensive and challenging. Besides, some data may be sensitive or confidential, making it impossible to share it publicly. This is where synthetic data comes into play. Synthetic data, created by algorithms, can supplement real-world data or even generate entirely new datasets. In this blog, we will explore several reasons why companies are turning to synthetic data for training their large language models.

1. One major concern with using data obtained through web scraping is the potential privacy and legal implications. Private data can inadvertently be captured, leading to legal issues depending on local laws. In contrast, synthetic data does not contain personally identifiable information (PII). Therefore, using synthetic data for training models eliminates liability and legal concerns associated with the use of sensitive information. This is particularly important for businesses prioritizing data privacy, security, and future compliance with evolving AI and personal data regulations.
2. An important advantage of synthetic data is that it is free from anomalies and errors. Synthetic datasets are typically complete and accurately labeled, resulting in improved performance of LLMs. Unlike real-world data, synthetic data is not prone to inaccuracies or misleading information. By training LLMs on clean and error-free synthetic data, companies can ensure more reliable and precise language models.
3. Real-world datasets often suffer from missing information, which can negatively impact modeling projects. Synthetic data can bridge these gaps by filling in missing values and providing complete datasets. This ensures that LLMs are trained on comprehensive and reliable data, free from incomplete or unavailable information. By supplementing real-world data with synthetic data, companies can enhance the quality and effectiveness of their language models.
4. Bias is a critical issue in machine learning models, including LLMs. Bias can creep into data collection, labeling, and the training process itself. Synthetic data offers a solution by allowing for the creation of datasets that are representative and balanced across different groups of people. By using synthetic data, companies can control for bias and ensure that their language models do not discriminate against certain demographics or perpetuate unfair biases.
5. Acquiring large amounts of data can be a challenging task, requiring significant resources and time. Synthetic data addresses this issue by allowing teams to reduce the effort and costs associated with data collection. Moreover, certain types of data may be difficult or even impossible to collect in the real world. Synthetic data provides the flexibility to create data about rare events or generate sensitive and confidential information, such as delicate medical records or time-series data. By using synthetic data, companies gain greater control over the data they use for training their LLMs.
6. Apart from the aforementioned advantages, there are several other reasons why teams consider using synthetic data for training large language models. These include:

• Improved Performance: Synthetic data can enhance the overall performance of LLMs by providing cleaner and more accurate training data.
• Cost Reduction: Using synthetic data reduces the costs associated with data collection and labeling, making it a cost-effective solution for training language models.
• Data Security: Synthetic data offers greater data security compared to using real-world data, as it does not involve handling sensitive information.
• Flexibility: Synthetic data allows teams to be more flexible in their training approach, enabling them to adapt and experiment with different datasets and scenarios.

Synthetic data provides a valuable alternative to collecting and labeling large amounts of real-world data for training large language models. By leveraging synthetic data, businesses can address legal concerns, eliminate anomalies, fill in data gaps, control for bias, overcome data collection challenges, and enjoy various other benefits. With the increasing importance of large language models in various industries, synthetic data emerges as a powerful tool for improving the performance and efficiency of these models.