Companies relying on AI may soon be in trouble
The world of artificial intelligence (AI) is increasingly challenged by the fact that real, human-generated data is starting to exhaust itself. According to a Business Insider article, synthetic data could be a solution, although many experts are skeptical. Tech giants such as OpenAI and Google have so far relied on text, video, and other media content available on the Internet to train their large-scale language models (LLMs). However, the supply of real data is already shrinking, and text data is predicted to run out by 2028.
As traditional data sources are exhausted, more and more companies are turning to synthetic data. They are generated by artificial intelligence systems and based on real data. Nvidia and Chinese tech giant Tencent have also developed models that can create artificial datasets. However, related research warns that excessive use of synthetic data can cause irreversible errors and model collapse.
Models fed with AI-generated data can produce gibberish, according to a study by a research team from Oxford and Cambridge. According to Gary Marcus, an AI analyst at New York University, synthetic data cannot provide real reasoning or design. Jathan Sadowski, a senior analyst at Monash University, has dubbed the phenomenon “Habsburg AI”, referring to the Austrian dynasty that was destroyed by domestication.
AI developers like OpenAI and Google pay huge sums of money for data from Reddit and other news sites to feed their models with fresh data. When real data runs out, companies must rely on synthetic data. According to some research, hybrid databases, which contain a mixture of real and synthetic data, can provide a more stable basis for models.
Related news
The age of cybercrime 2025: a new economic reality
The annual global cost of cybercrime could reach USD 14tn…
Read more >The future has already begun – thoughts on Innovation Day
How will innovations shape the future of retail and the…
Read more >Conscious consumers, digital transformation: lessons learned on the FMCG market in 2024
This article is available for reading in Trade magazin 2025/6-7.…
Read more >Related news
KSH: in April, retail turnover exceeded the same period of the previous year by 5.0 percent and the previous month by 2.0 percent
In April 2025, the volume of retail trade turnover increased…
Read more >FAO food price index fell in May
The benchmark global food price index fell in May from…
Read more >Eurozone retail sales rise in April
Retail sales in the eurozone and the European Union increased…
Read more >