AI’s Phantom Respondents: Rewiring Market Research for 2025

In the fast-evolving world of market research, a seismic shift is underway. As we approach 2025, synthetic data—artificially generated information mimicking real-world responses—is poised to transform traditional surveys into AI-powered insight engines. This isn’t just about speed; it’s about achieving unprecedented ROI in an industry valued at over $150 billion, according to a report by Greenbook and Rival Technologies.

Market researchers are increasingly turning to synthetic respondents, virtual personas created by generative AI, to accelerate data collection and reduce costs. These digital stand-ins can simulate diverse demographics, providing insights in hours rather than weeks, while addressing privacy concerns that plague traditional methods.

The Rise of Synthetic Respondents

Greenbook’s insights highlight how AI is ushering in an ‘intelligence era’ focused on high-quality, scalable insights. Published in July 2025, their article notes that synthetic data enables researchers to generate vast datasets without compromising participant privacy, a critical factor in an age of stringent data regulations.

Similarly, a February 2025 post on Acuity Knowledge Partners predicts that AI automation and synthetic data will dominate 2025 trends, allowing for real-time insights and predictive modeling that traditional surveys can’t match.

ROI Scrutiny in a High-Stakes Industry

The push for ROI is intensifying as companies demand measurable returns from their research investments. Greenbook’s June 2025 GRIT report emphasizes that AI accelerates workflows and augments human insight, potentially cutting costs by enabling synthetic data to fill gaps in real respondent pools.

Industry projections from Newstrail, published just a day ago, forecast the synthetic data generation market to reach $3.79 billion by 2032, driven by AI innovations that enhance data privacy and research efficiency.

Balancing Speed and Depth

While velocity is a key selling point, experts warn that depth remains crucial. A July 2025 Greenbook piece on the ‘secret life of synthetic data’ explains how generative AI accelerates insights and unlocks new use cases, but stresses the need for validation against real data to ensure accuracy.

Forbes, in a September 2025 council post, reveals that over half of market researchers now use synthetic data to broaden scope and speed up processes, reserving live panels for nuanced validation. This hybrid approach is seen as the path to sustainable ROI.

Market Projections and Growth Trends

Coherent Market Insights estimates the synthetic data market at $485.9 million in 2025, projected to grow at a 30.6% CAGR to $3,148.8 million by 2032, underscoring its rapid adoption in market research.

OpenPR’s recent analysis notes a 34.8% CAGR for the synthetic data market through 2029, highlighting its role in enabling faster, privacy-compliant research methodologies that directly impact ROI.

AI-Driven Transformations

Greenbook’s December 2024 trends report for 2025 identifies synthetic data and ROI focus as key drivers, helping researchers tackle product complexity in a changing landscape.

Posts on X from industry leaders like a16z in June 2025 point out that companies spend $140 billion annually on market research, much of it on outdated methods, with AI flipping the model toward synthetic data for efficiency.

Challenges in Adoption

Despite the hype, challenges persist. Acuity Knowledge Partners notes that while synthetic data offers privacy-compliant solutions, ensuring its quality and avoiding biases requires rigorous oversight.

Greenbook’s June 2025 article on AI in market research discusses how AI powers personalization and segmentation but warns of potential pitfalls in over-relying on synthetic sources without human validation.

Innovative Use Cases Emerging

Real-world applications are expanding. For instance, synthetic personas are being used to simulate rare consumer behaviors, as detailed in Forbes’ September 2025 post, allowing researchers to explore edge cases that real surveys might miss.

X posts from October 2025, such as those by phlstf, indicate that by 2025, around 60% of AI data will be synthetic, filling gaps and protecting privacy while training models on hypothetical scenarios.

Economic Impacts and Future Outlook

The economic ripple effects are significant. Gartner’s projections, referenced in a June 2025 X post by Beth Kindig, suggest generative AI spending will surge 76.4% year-over-year to $644 billion, fueling advancements in synthetic data for research.

OpenPR’s week-old report on synthetic data visualization forecasts a market reach of $2.89 billion by 2029, driven by tools that make AI-generated insights more accessible and actionable for ROI-focused strategies.

Strategic Imperatives for Researchers

To capitalize on these trends, industry insiders recommend a balanced approach. Greenbook advises integrating synthetic data with traditional methods to achieve both speed and depth, ensuring that AI-generated insights lead to trusted, data-driven decisions.

Finally, as SASsoftware and IDC’s recent report shared on X by Sabine VanderLinden highlights, trustworthy AI is essential, with 46% of organizations facing a ‘trust dilemma’ that affects ROI, emphasizing the need for proven systems in synthetic data applications.