AI has learned to write, reason, code and create at remarkable scale. But as artificial intelligence generates more of the content used to train future systems, the industry faces an uncomfortable possibility: What happens when AI increasingly learns from itself?
A 2024 study published in Nature found that repeatedly training models on AI-generated outputs can cause them to lose information from the original data distribution, with less common patterns among the first to disappear. Researchers call this phenomenon “model collapse”—a warning that more data does not automatically translate into better AI.
Synthetic data offers a compelling answer to the industry’s growing demand for training material. It can simulate rare events, generate examples for specialized tasks and help developers test systems in situations that would be expensive, impractical or risky to reproduce in the real world. But synthetic data can also create a closed feedback loop, amplifying existing errors and narrowing the range of patterns a model recognizes.
Members of the Senior Executive AI Think Tank, a curated group of experts specializing in machine learning, generative AI and enterprise AI applications, examine what it will take to keep AI learning rather than looping. Below, they offer a roadmap for executives navigating the next phase of AI adoption: how to distinguish useful synthetic data from convincing but uninformative output, how to protect the evidence that makes AI smarter and how to determine whether a new model is genuinely more capable than the one before it.
“Paying creatives for their work and creativity will prevent an ouroboros-like situation where the AI models degrade themselves over time.”
Preserve Original Data and Human Creativity
For Lynn Comp, Head of AI Center of Excellence at Intel, the path forward begins with protecting access to information that models did not create.
“Since the models largely have access to the same data sources, the best approach to synthetic data is starting with primary sources that were not AI-generated and are unique or new,” Comp says. That requires a change in how AI developers acquire training material, including “commercial agreements that were not top priority for the AI labs in the past.”
Comp also emphasizes the importance of compensating human creators.
“Paying creatives for their work and creativity will prevent an ouroboros-like situation where the AI models degrade themselves over time,” she says.
The commercial implications extend beyond data acquisition. AI developers need sustainable relationships with researchers, publishers, artists and domain experts whose original work contributes knowledge that synthetic material cannot independently supply. Preserving that diversity is both a technical safeguard and an investment in the long-term value of AI.
Govern Synthetic Data Like a Business-Critical Asset
David Obasiolu, an AI Security, Governance and Systems Consultant at Vliso AI, approaches the problem through accountability. Synthetic data should be managed with the same discipline organizations apply to other consequential data assets.
“From an AI governance perspective, the industry must treat synthetic data as a governed asset, with documented provenance, labeling, lineage, quality thresholds and human accountability,” Obasiolu says. “It should complement, not continually replace, diverse human and real-world data.”
He argues that useful synthetic data should deliberately address “rare scenarios, underrepresented groups, edge cases or counterfactuals” while preserving accuracy and diversity. Conversely, data that echoes a model’s dominant patterns can amplify its blind spots.
The solution is independent evaluation. Organizations should assess synthetic datasets for novelty, representativeness, bias, drift and downstream performance before incorporating them into training pipelines. Clear lineage also helps teams identify when model-generated labels have inadvertently become ground truth.
For executives, governance is not paperwork added after data generation. It is the mechanism for establishing whether synthetic data deserves to influence a production model.
Keep Synthetic Data Anchored to Reality
Matan Mishan, Senior Vice President, Agentic at Dot Compliance, Inc., argues that synthetic data itself is not the fundamental problem.
“Synthetic data isn’t the problem; closed loops are,” Mishan says. “A model trained on its own output learns its own average and slowly forgets the tails.”
He sees a potential solution in the expanding supply of real-world information. Physical AI systems, including cars, robots and connected devices, can collect observations that ground simulations in actual conditions. Mishan points to Tesla and Waymo as examples of companies with substantial real-world driving data that can help ground simulations of rare edge cases.
“A simple test for useful synthetic data is to consider whether it carries information the model couldn’t have produced itself, verified against reality,” he says. “If not, it’s an echo, however realistic it looks. The internet was read once; reality refreshes every second.”
“Fluent variations alone are a poor measure of learning.”
Test Whether the Model Learns the Right Distinctions
Nikhil Jathar, CTO of AvanSaber Inc., emphasizes that synthetic data should teach models which differences matter to a decision.
“For an invoice task, changing the font should leave the answer unchanged; changing the currency or approval limit may require a different action,” Jathar says. “Generate these paired cases from verified rules and test whether the model learns the distinction.”
Jathar points to DeepMind’s AlphaProof as an illustration of the value of external verification. Its mathematical proofs can be checked using Lean, a proof assistant that determines whether formal proof steps are valid. The broader lesson is that a model’s output should be assessed against a standard independent of its fluency.
“Fluent variations alone are a poor measure of learning,” Jathar says.
For enterprises, this approach translates into controlled experiments: Vary one meaningful factor at a time, define the correct response in advance and test whether the model generalizes to cases it has never seen. Hold out fresh real-world examples and retain synthetic data only when it improves performance on those examples.
Demand Verifiable Results, Not Plausible Outputs
Hastimal Jangid, Co-Founder of RankRabbit AI, stresses that organizations must maintain a steady supply of data from outside their models.
“A model trained only on its own kind of output tends to narrow over time: The common patterns get stronger and the rare cases fade,” Jangid says. “Fresh human work, real-world measurements and actual user outcomes are what keep that from happening, so labs need to treat them as something to protect, not just a cost.”
He also distinguishes between generated examples that can be tested and those that merely sound convincing.
“Useful synthetic data has something to check it against,” he says, pointing to executable code, verifiable mathematics and simulations that follow real physics.
The operating principle is to make correctness observable. A program either passes its tests or fails them; a mathematical proof either satisfies its formal requirements or does not. These external checks give generated examples a source of truth beyond a model’s own assessment.
Jangid recommends tracking each example’s origin and measuring progress on held-out real-world tests rather than relying on the model’s self-evaluation.
Expand the Training Distribution With Harder Examples
Dhyey Mavani, Generalist, Agentic AI at Abridge, emphasizes that synthetic data should expand the range of situations a model can handle.
“Useful synthetic data should expand the training distribution, not simply echo it,” Mavani says. “That means generating hard counterexamples, rare edge cases, alternative reasoning paths and environments where outcomes can be independently verified.”
This is particularly relevant in complex workflows, where routine examples may account for most training material while unusual circumstances carry disproportionate risk. A clinical documentation system, for example, must be evaluated beyond familiar conversation patterns to determine whether it can handle unfamiliar phrasing and atypical situations accurately.
Mavani’s standard is measurable improvement on unseen tasks. Synthetic data should introduce new, checkable information and help models generalize beyond the examples used to train them.
“If it only makes the model more confident on familiar patterns, it is amplification instead of learning,” he says.
Close the Gap Between AI Output and Validation
Steve Taplin, CEO of Sonatafy Technology, Inc., warns that synthetic data can create an illusion of progress.
“The biggest risk with synthetic data is an AI echo chamber, where models grow more confident without becoming more capable,” Taplin says. “Synthetic data isn’t the problem. Unvalidated synthetic data is.”
He says valuable examples must be grounded in independent evidence, expert review or verifiable outcomes, such as code that passes its tests. They should also target edge cases where the model struggles rather than reinforcing areas in which it already performs well.
Taplin calls this the “AI Validation Gap”: output reaching production without evaluation that decision-makers trust.
“The question isn’t how much synthetic data we generate,” he says. “It’s whether we can independently prove the next model is better.”
That requires evaluation to be built into development, deployment and ongoing monitoring—not left until after a system is already in use.
Feed Real-World Feedback Back Into Training
Meghana Makhija, Senior Product Manager Tech at Amazon, focuses on the operational feedback loops that can turn real-world use into measurable model improvement.
“Future models need a continuous connection to real-world outcomes,” Makhija says. “Capture customer overrides and failures, validate corrections and feed them into training and evaluation.”
Human review should extend beyond obviously uncertain cases. Makhija advises routing low-confidence decisions to people while also auditing a representative sample of high-confidence decisions to uncover hidden errors and performance drift.
That second practice is especially important because confidence does not guarantee correctness. If organizations review only decisions the model already flags as uncertain, they may miss systematic failures that the model does not recognize.
Makhija also cautions against allowing automated evaluators to displace human expertise. Synthetic data should address capability gaps, underrepresented scenarios and challenging tasks with independently verifiable answers.
“Its value lies in measurable gains on unfamiliar, independently evaluated tasks,” she says. “More data is useful only if it expands what models can reliably do.”
“As AI-generated content becomes more common, companies need to be intentional about what they’re feeding back into their models.”
Put Diversity and Human Judgment Ahead of Volume
Brock Murray, Co-Founder of seoplus+, argues that the same principle applies to the content and information organizations use to train AI.
“Data quality needs to take priority over quantity,” Murray says. “As AI-generated content becomes more common, companies need to be intentional about what they’re feeding back into their models.”
He identifies fresh perspectives, original research, real-world data and human expertise as essential ingredients in continued improvement. Without that diversity, organizations risk reinforcing existing biases and blind spots rather than developing broader capabilities.
“Human oversight is critical to challenging assumptions and identifying gaps,” Murray says.
For enterprise leaders, this means examining not only how much data a pipeline produces but also whose perspectives it represents, which situations it omits and whether its assumptions are being independently challenged. Human judgment should be part of the process of identifying weaknesses, selecting examples and determining whether an apparent improvement is meaningful.
Organizations that combine AI capabilities with ongoing testing and human review are better positioned to turn synthetic data into a tool for genuine progress.
Verify the Answer Key Before Training
Vivek Kumkar, Sr. GenAI Leader at Amazon Web Services (AWS), focuses on the information that makes a training example useful: a trustworthy label that establishes whether the answer is correct.
“Generating data is the easy part,” Kumkar says. “What teaches a model is the label, the answer key that says whether it was right.”
When another model supplies that answer key without independent verification, the training process risks teaching agreement rather than new capabilities. Kumkar argues that the most valuable synthetic data is labeled using information outside the model itself, such as measurements, sensor readings, actual customer outcomes or tests that can fail.
“I run data platforms where this is a daily discipline, and the quiet failure is contamination: model-made labels leaking back into the ground truth unmarked,” he says. “Once that happens, you can no longer tell a real new capability from a louder echo of what the model already believed.”
Kumkar recommends tracking provenance for every example and measuring progress only on real data the model has never seen. For organizations building AI platforms, this means preserving a clear separation between generated material, verified labels and independent evaluation data.
10 Strategies for Building AI That Learns, Not Just Repeats
- Protect access to original human-created data. Build sustainable partnerships with researchers, publishers and subject-matter experts to preserve diverse, high-quality training material.
- Establish governance for every synthetic dataset. Require documented provenance, labels, lineage, quality thresholds and accountable human oversight before data enters a training pipeline.
- Anchor simulations to real-world evidence. Use observations, measurements and verified outcomes to ensure synthetic examples remain grounded in reality.
- Generate examples that test meaningful distinctions. Vary important factors systematically and measure whether models respond correctly to changes that affect decisions.
- Require independently verifiable answers. Favor synthetic examples whose correctness can be established through execution, mathematical verification or other objective tests.
- Target capability gaps, not familiar strengths. Generate difficult counterexamples, rare scenarios and alternative reasoning paths to expand the range of situations a model can handle.
- Make validation part of the development lifecycle. Compare each new model against trusted benchmarks and require evidence of improvement before deployment.
- Use customer feedback to drive improvement. Capture failures, overrides and validated corrections, and audit high-confidence decisions as well as uncertain ones.
- Keep human expertise central to data quality. Use diverse perspectives and expert review to challenge assumptions, expose omissions and identify bias.
- Separate generated labels from independent ground truth. Track the origin of every example and evaluate progress on held-out real-world data that was never used for training.
What Comes Next for AI Learning
AI will continue to generate enormous amounts of data, and businesses will find plenty of ways to put it to use. The harder question is how to make sure those efforts lead to meaningful progress. As models become increasingly involved in creating the material used to train future models, maintaining a connection to human knowledge and real-world experience will become even more important.
For business leaders, this deserves attention now. Decisions about data sources, training practices and model evaluation will shape how reliable and capable their AI systems become over time. That means asking tougher questions about where information comes from, what a model is actually learning and whether its improvements hold up outside the training environment.
The long-term success of AI will depend on its ability to keep learning from a changing world. And that requires an ongoing investment in the people, experiences and original information that make new learning possible.
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