Exploring New Market Opportunities? Discover AI Data Labeling and Global Payments

• The AI labeling sector is projected to reach a sum of USD 62.35 billion by the year 2027.

• This sector relies on digital workers, many of whom are in emerging markets. The number of workers is estimated to be "millions" with the potential to become "billions".

• How to join this opportunity and ensure a payment infrastructure for the full market potential?"

March 2024. The data labeling industry is experiencing significant growth, driven by the increasing number of digital workers who find in this activity a way to generate income by training artificial intelligence (AI) models. Rising internet penetration, relatively low salary expectations, and the ease with which one can learn a trade online have also made it easier for people to join the online workforce.

This dynamism facilitates unprecedented transactions across borders, opening new avenues for cooperation and global economic growth. In this context, a unique opportunity emerges for companies in the AI ​​sector: the exploration of emerging markets, especially in the Global South.  Labor costs in these regions are significantly lower, ranging from 20% to 70% or even more in some cases, compared to the West, according to reports from organizations such as the International Labour Organization (ILO) and various economic studies.

This competitive advantage makes expansion into these emerging markets a clear strategic decision for companies seeking to maximize their efficiency and global reach. However, entering these markets comes with its set of challenges, necessitating a thorough understanding of local dynamics and strategic adjustments to navigate existing hurdles and fully leverage the opportunities at hand.

The data labeling industry, with its varied and global workforce, requires distinct services tailored for its unique context. On one side, there's a need for a payment solution that transcends geographical barriers; on the other, the opportunity to engage a vast pool of digital workers keen to enter the market.

The potential of the Data Labeling industry

The AI industry is driven by a growing need for high-quality data. This drive has led to a global network of remote workers responsible for data labeling and annotation. Airtm, known for its cross-border payment capabilities and strong digital workers community occupies a unique position to support this burgeoning industry. The AI labeling sector is projected to reach a sum of USD 62.35 billion by the year 2027, highlighting a significant growth trajectory within the industry. This sector relies on digital workers, many of whom are in emerging markets such as Kenya, the Philippines, India, or Venezuela. Growth is inevitable for an industry in constant expansion. AI not only represents a crucial significant technological advancement for development but also indicates a global shift towards online work and a digital economy. Furthermore, the digital labor market is estimated to grow from USD 1.7 trillion to 5.5 trillion by 2030.

This trend presents a significant opportunity for the workforce, especially in the Global South and the mentioned countries.

Challenges for users impacting companies.

One of the main difficulties for digital workers lies in the complexity of withdrawing to local currency, which can demotivate them and be detrimental to companies in the sector. Currently, this process is complicated and may deter platform users.

Scale AI, through its company Remotask, a platform that offers the possibility of working from home performing a variety of tasks online, faced the challenge of quickly onboarding many digital workers for a new project in 2021.

For this, they found in Airtm more than just a payment solution. "We realized that there was a great opportunity to access new markets in emerging economies, but we were missing out on it due to not having adequate solutions," says a representative of Scale AI. "In Airtm, we not only found a solution for our users but also access to a huge community of digital entrepreneurs willing to work on our platform."

"We supported Scale AI in growing their community through various types of growth campaigns, including ambassador/influencer initiatives, social media campaigns, email communications, and more," indicates Mila, Accounts Management Director at Airtm. 

The results were remarkable: there was a 62% growth in the number of transactions and a 600% increase in volume between 2022 and 2023. Additionally, the community grew by more than 30% during 2022. Digital workers were able to perform transactions in 150 countries.

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