AI Training Takes Root in Rural India

Mon Oct 20 2025 16:14:12 GMT+0300 (Eastern European Summer Time)

Explore how rural areas in India, like Virudhunagar, are becoming hubs for AI training and job creation, moving traditional IT outsourcing to local communities.

Rural India is witnessing a significant shift as towns like Virudhunagar embrace AI training and job opportunities. Companies like Desicrew and NextWealth are pioneering 'cloud farming', which brings IT jobs closer to home, enabling locals to engage in advanced AI tasks. With a workforce that is increasingly inclusive, particularly of women, these firms aim to leverage the diverse talent pool in smaller towns while addressing the urgent need for human-annotated data in AI systems.

AI Training Takes Root in Rural India

Virudhunagar, a town in southeastern India, can boast temples that date back thousands of years. But not far from those ancient sites, people are working on the latest technology - artificial intelligence.

One of those is Mohan Kumar, who explains his role in AI annotation: 'I collect data from various sources, label it, and train AI models so they can recognize and predict objects. Over time, the models become semi-supervised and can make decisions on their own.'

Historically, India has been a center for outsourcing IT support, with cities like Bangalore and Chennai being traditional hubs for such work. However, recently there has been a shift towards more remote areas where costs for staff and space are lower. This trend, known as cloud farming, is supported by AI, with rural towns, including Virudhunagar, now hosting firms focused on AI.

When asked if he feels at a disadvantage not being in a big city, Kumar states, 'Professionally, there is no real difference. We work with the same global clients from the US and Europe, and the training and skills required are the same.'

Mr. Kumar is employed by Desicrew, a pioneer in cloud farming founded in 2005. CEO Mannivannan J K emphasizes their mission to create jobs closer to where people live, avoiding the need to migrate to cities for work. 'For far too long, opportunities have been concentrated in cities, leaving rural youth behind,' he explains.

Desicrew handles various outsourced tasks including software testing, dataset creation for AI, and content moderation. Currently, 30 to 40% of their work focuses on AI, and this is expected to grow significantly.

'Our centers mirror urban IT hubs in every way – secure data access, reliable connectivity, and uninterrupted power,' adds J K. Notably, around 70% of the workforce are women, making a significant impact on their families through financial security and education.

NextWealth, founded in 2008, is another key player in the cloud farming space and employs 5,000 staff in 11 offices across smaller towns. Co-founder Mythily Ramesh highlights that 60% of India's graduates come from these small towns, creating an untapped pool of talent that is essential for AI development.

As AI and GenAI continue to evolve, Ramesh predicts that nearly 100 million jobs will emerge in training and validation, placing rural India at the forefront of this new workforce. 'In the next 3–5 years, small-town India can be the backbone of this workforce,' she asserts.

Experts like KS Viswanathan, a former advisor at India's National Association of Software and Service Companies, note that while Silicon Valley may develop AI technologies, the operational workforce sustaining these innovations increasingly comes from India.

Though there are challenges in rural connectivity and client perceptions, success in AI training and job creation appears promising for India’s rural landscape. As companies fine-tune AI processes, hinging on human input, it becomes clear that the future of AI might very well thrive in the heart of rural communities.