Data labelling transforms rural economies in Tamil Nadu

India’s small towns are fast becoming global hubs for AI training and data labelling, as outsourcing firms move operations beyond major cities like Bangalore and Chennai. Lower costs and improved connectivity have driven a trend known as cloud farming, which has transformed rural employment.

In Tamil Nadu, workers annotate and train AI models for global clients, preparing data that helps machines recognise objects, text and speech. Firms like Desicrew pioneered this approach by offering digital careers close to home, reducing migration to cities while maintaining high technical standards.

Desicrew’s chief executive, Mannivannan J K, says about a third of the company’s projects already involve AI, a figure expected to reach nearly all within two years. Much of the work focuses on transcription, building multilingual datasets that teach machines to interpret diverse human voices and dialects.

Analysts argue that cloud farming could make rural India the world’s largest AI operations base, much as it once dominated IT outsourcing. Yet challenges remain around internet reliability, data security and client confidence.

For workers like Dhanalakshmi Vijay, who fine-tunes models by correcting their errors, the impact feels tangible. Her adjustments, she says, help AI systems perform better in real-world applications, improving everything from shopping recommendations to translation tools.

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