How SAS's Hazy Acquisition Will Strengthen AI Capabilities

Businesses globally are increasingly reliant on data-driven insights, particularly in sectors like healthcare and finance where data privacy is paramount.

Amongst these data-driven insights, synthetic data – which mimics real-world data without compromising sensitive information – is becoming essential for organisations looking to leverage AI while adhering to strict regulatory frameworks.

In this context, SAS, a prominent player in data analytics and AI, has made a significant move by acquiring the key software assets of Hazy, a London-based company known for its innovative synthetic data technology.

The integration of Hazy's technology into SAS's offerings aims to bolster its Gen AI portfolio, providing customers with enhanced capabilities for data generation and analysis.

SAS & Hazy acquisition details and strategic implications

As organisations navigate complex regulatory environments, the ability to generate synthetic data that maintains privacy while providing valuable insights represents a significant advancement in analytics capabilities.

Jim Goodnight, CEO of SAS, says: “Our acquisition of Hazy’s IP represents a pivotal step in our commitment to innovation in the next generation of data management and AI.

“Hazy is a pioneer in bringing synthetic data to market as a viable enterprise product and analysts rank it among the top software providers in its category.

“By integrating their technology, we can offer our customers unparalleled opportunities to harness data safely and effectively, enabling them to experiment and model scenarios that were previously out of reach and gain a competitive advantage.”

This integration is expected to facilitate deeper research and innovation by addressing challenges related to data availability and quality.

Bryan Harris, Chief Technology Officer at SAS, additionally highlights the growing importance of synthetic data in the business landscape.

He says: “Analysts predict that by 2026, 75% of businesses will use generative AI to create synthetic customer data, up from less than 5% in 2023.

“For SAS customers, this marks a strategic leap, solidifying SAS' leadership in AI and analytics. With synthetic data, customers can innovate and research more deeply, accessing data that was previously out of reach due to availability, access or quality issues.”

This forecast underscores the urgency for organisations to adapt their strategies for leveraging AI effectively.

The acquisition also aligns with SAS's broader strategy as it prepares for an initial public offering (IPO), which has been a priority since Goodnight announced plans for public market entry in 2021.

The integration of Hazy’s technology is seen as a vital component in enhancing SAS's product offerings ahead of this anticipated IPO.

The role of synthetic data in modern analytics

Synthetic data is generated by algorithms that replicate the statistical properties of real datasets without including any identifiable personal information.

This approach mitigates privacy risks while expanding the volume of usable data for analysis.

Kathy Lange, Research Director for AI Software at IDC, described synthetic data as a "game-changer" for industries governed by stringent privacy regulations such as healthcare and finance.

She adds: “SAS’ acquisition highlights the growing requirement for synthetic data as an integral component of a modern AI toolkit, addressing data scarcity and privacy issues and improving model accuracy while reducing biases.”

However, the benefits of synthetic data extend beyond compliance with privacy laws; it also enhances model accuracy and reduces biases inherent in traditional datasets.

By allowing organisations to simulate various scenarios without the constraints of real-world limitations, synthetic data fosters innovation across multiple sectors.

For instance, it can be used to create diverse datasets that reflect different customer behaviours or market conditions, thus improving AI model training.

Following this acquisition, SAS plans to integrate Hazy's capabilities into its existing product line, particularly SAS Data Maker.

This tool is designed to generate synthetic datasets that accurately reflect original datasets while maintaining user privacy.

The integration aims to expedite the development cycle for AI projects by providing quick access to high-quality synthetic data.

The enhanced capabilities resulting from this acquisition are expected to yield several advantages for SAS customers:

Enhanced innovation: Access to rich synthetic datasets can lead to new breakthroughs.
Accelerated development: Rapid generation of synthetic data can shorten time-to-market for AI solutions.
Trustworthy systems: Robust processes ensure ethical standards are met in AI development.
Improved privacy: Synthetic datasets do not contain real identifiable information, allowing organisations to operate securely.
Cost efficiency: Reducing reliance on expensive traditional data collection methods makes analytics more accessible.

The first preview of these enhanced solutions is anticipated in early 2025, marking a significant step forward in SAS's mission to deliver innovative analytics solutions globally.

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