Rural India Powers Global AI Models as 200,000 Annotators Drive Machine Learning Revolution

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A growing workforce of at least 200,000 data annotators in rural India now represents roughly half of the world's data labelling workforce, powering global AI models for tech giants. Workers like 27-year-old Chandmani Kerketta balance farming by day with night shifts labelling images and videos essential for machine learning applications like autonomous vehicles. The shift brings new employment opportunities and financial independence, particularly for women in remote regions.

Rural India Emerges as Data Labelling Powerhouse for Global AI Models

Rural India is quietly fueling the artificial intelligence revolution through an expanding workforce dedicated to data labelling and annotation. At least 200,000 annotators now work from India's villages and small towns, representing roughly half of the world's data-labelling workforce, according to US-based Scry AI

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. This rural Indian workforce performs essential tasks that power global AI models, including labelling images, videos, and documents during eight-hour shifts from home or modest internet-connected centres.

Source: ET

Source: ET

The work itself is foundational to machine learning. Data annotation involves teaching AI systems to recognize patterns—whether identifying road markings and headlights for autonomous vehicles or distinguishing between legitimate ATM users and potential burglars in security footage

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. Every AI model relies on vast amounts of labelled data, and the more precise the labelling, the better the technology performs. This meticulous work connects rural communities directly to the global digital economy.

Women in Workforce Find New Pathways Through AI-Related Job Opportunities

The shift toward decentralizing AI services has created significant employment opportunities, particularly for women from conservative backgrounds. Chandmani Kerketta, a 27-year-old from Jharkhand state and the first in her tribal community family to attend college, balances farming tomatoes and peas by day with night shifts of data work

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. "This job helped me finish my studies, and help at home on our farm," Kerketta explained, noting that when she first began, villagers mocked her—but now look at her with pride as she rides her scooter through the village.

Source: France 24

Source: France 24

For Amala Dhanapal, the first graduate in her family where her father works as a tailor and her mother as a homemaker, working in AI has brought both financial independence and socio-economic change. "It's a big thing," Dhanapal said, explaining that it provides a gateway to learning for women who find it difficult to pursue education due to family background

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. The government hopes this AI-driven labour shift will transform lives by bringing more women into the workforce.

Tech Giants Invest as India Climbs Global AI Landscape Rankings

India now ranks third in a global AI power ranking, overtaking South Korea and Japan, based on more than 40 indicators from patents to private funding calculated by Stanford University's Institute for Human-Centered AI

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. In recent months, tech giants including Google, Microsoft, and Amazon have announced multi-billion-dollar investments to build some of the world's biggest data centres in India. The country will host an international AI summit next month, signaling its ambitions in the sector.

While cities like Bengaluru, Hyderabad, and Chennai have long hosted major international players, India's AI push now extends into remote regions. In Tamil Nadu state, Indu Nadarajan travels along winding rural roads to a small-town office where she labels images for autonomous vehicles. She works for NextWealth, an AI-enabling services firm headquartered in Bengaluru with offices across small towns, supporting clients from the United States, Europe, and Asia

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. "Many go to Chennai and Bengaluru to learn about AI," said Nadarajan, who holds a master's degree in mathematics. "But being here in our hometown and learning about AI makes me feel very proud."

Micro-Entrepreneurship and Automation Shape Future Employment Opportunities

NextWealth founder Sridhar Mitta, 80, a former chief technology officer at Indian tech giant Wipro, believes the distributed model will drive future growth. "When I can design a product for a US company 5,000 miles away, why can't I do it from 200 miles away?" Mitta said. "Anybody can be anywhere and do the things, because the value goes through the internet"

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. His scattered employees earn between $275 to $550 a month.

While AI-driven automation may render some jobs obsolete, Mitta predicts new opportunities will emerge. "Micro-entrepreneurship will be the next phase for small towns," he said. "It may not be another billion-dollar company, but they will produce something which will be useful to the region"

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. Infrastructure improvements, including a national fibre-optic cable network laid by Indian Railways, now enable workers like 25-year-old Anju Kumari in Jharkhand to participate in this digital shift, with Kumari describing the work as providing "a pathway to a wider world."

The expansion of annotators into rural areas demonstrates how AI services can be decentralized, connecting remote communities to cutting-edge technology development while addressing local economic needs. As India positions itself within the global AI landscape, this workforce represents both the human foundation of machine learning systems and a test case for how technology can distribute economic opportunity beyond traditional urban tech hubs.

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