Data anonymization is the process of removing or altering personal information from a dataset so that individuals cannot be easily identified. This technique is crucial for protecting privacy while still allowing organizations to analyze data for trends and insights. By replacing identifiable details with pseudonyms or aggregating data, companies can use valuable information without compromising the privacy of individuals. Anonymization is especially important in fields like healthcare, where sensitive information about patients must be safeguarded. For instance, when researchers study medical records, they can anonymize the data to ensure that patients remain unidentifiable, thus maintaining confidentiality while still contributing to important medical advancements.