Synthetic data is artificially generated information that mimics real-world data but does not contain any actual personal or sensitive information. It is created using algorithms and models, allowing researchers and developers to test systems, train machine learning models, and conduct experiments without the privacy concerns associated with real data. This type of data is particularly useful in fields like artificial intelligence and data science, where large datasets are often required. By using synthetic data, organizations can ensure compliance with data protection regulations while still gaining valuable insights and improving their technologies.