AI-generated synthetic data is the meaning of the original source data without any of the sensitive information. The patterns, the correlations, the insights all remain the same, yet none of the datapoints match those in the original dataset used to train the synthetic data generator.
These synthetic datasets contain all the value of the data without any privacy risk. A bit like a rich cake without calories.
Synthetic data gives a true representation of the real world. As a result, it can be used as a drop-in placement for real data. What's more, synthetic data generation allows for data augmentation processes to mold the dataset to fit certain criteria, like size or fairness.