What Is Synthetic Data? The Good, The Bad, and The Ugly

Sharing data can often enable compelling applications and analytics. However, more often than not, valuable datasets contain information of sensitive nature, and thus sharing them can endanger the privacy of users and organizations. A possible alternative gaining momentum in the research community is to share synthetic data instead. The idea is to release artificially generated datasets that resemble the actual data -- more precisely, having similar statistical properties. So how do you generate synthetic data? What is that useful for? What are the benefits and the risks? What are the open research questions that remain unanswered? In this article, we provide a gentle introduction to synthetic data and discuss its use cases, the privacy challenges that are still unaddressed, and its inherent limitations as an effective privacy-enhancing technology.