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Small Towns in India can play an Important role in Emerging GenAI Opportunities

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Dr. Sridhar Mitta is a seasoned industry luminary with over five decades of experience in Information Techno- logy (IT) and R&D. He epitomizes excellence in Technology, Business, Entrepreneurship, and Social Im- pact. As first employee of Wipro's IT business and R&D manager in 1980, he played a pivotal role in shaping technological advancements and pioneering new busi- ness models throughout his remarkable 20-year tenure at Wipro.

In a conversation with Charulatha, a correspondent in Siliconindia Magazine. Sridhar discussed leveraging GenAI to boost employment and foster local entrepreneurship in small towns while empha- sizing responsible and sustainable implementation measures.

GenAI empowers local entrepreneurship, offering opportunities for both seasoned entrepreneurs and individuals exploring new ventures


How can GenAI be utilized to create demand for employment in small towns?

Artificial Intelligence (AI)/ Machine Learning (ML) and now Generative AI (GenAI) act as catalysts, bringing transformative change across various domains, creating new opportunities, and optimizing existing processes. GenAI, requiring a "human in the loop" for effectiveness, generates substantial demand for graduates. It redefines traditional AI/ML roles, directly involving trained graduates in tasks demanding human judgment and creativity. The small towns (tier 2/3 cities) are ready to play a significant role in the evolving GenAI landscape not only from India but also globally.

Most GenAI use cases are in the proof-of-concept stage but poised for exponential growth, presenting various employment opportunities such as AI model training, data labelling, categorization, annotation for online retail, customer support through chatbots, content creation, quality assurance, and more. The common thread is the need for “human in the loop” jobs, perfectly suited for graduates from small towns who have proven to be highly trainable, available at scale, and possess a positive attitude.

How can small towns be used to meet the demand with the supply of talent for GenAI-related work?

Historically, the Indian IT industry was concentrated in metropolitan and urban centres, driven by talent availability, robust internet infrastructure, civic facilities, and government incentives. However, this success led to talent migration from other metros and small towns, straining urban infrastructure in IT clusters. Despite achievements, the industry faces a talent shortage, causing attrition and higher operational costs.

GenAI offers a unique opportunity as the talent pool of graduates and internet facilities are now available in several small towns across the country. Moreover, a significant number of women graduates from small towns, refrained from migrating to cities before marriage, represent a huge untapped human talent.

Connecting demand from metros with the supply from small towns requires a sound business model that is sustainable, scalable, and profitable. One approach involves establishing delivery centres in these towns, leveraging existing infrastructure and the local talent pool. Collaborations with local academic institutions can provide specific training, enhancing these centres' capabilities and contributing to economic growth with lower operational costs.

Alternatively, online GenAI platforms can adopt a crowd-sourcing model, training and employing graduates from any location without necessitating migration.

"The integration of "human in the loop" tasks creates diversified and challenging job roles, offering fulfilling careers beyond traditional employment"

How might GenAI affect the workforce and contribute to the growth of the economy in small towns?

GenAI has a transformative impact on workforce diversification and economic growth in small towns. The integration of "human in the loop" tasks creates diversified and challenging job roles, offering fulfilling careers beyond traditional employment. Trained graduates become experts in AI-driven creativity, breaking away from conventional roles. The economic contri- bution is substantial, preventing urban concentration and fostering an inclusive environment. GenAI acts as a catalyst for economic growth and job creation, providing a pathway for small-town talent to actively participate in the evolving AI landscape.

Most of the workforce comprises first-time graduates, and their parents often work in low-paying jobs or traditional occupations. GenAI-related employment meets the high aspirations of their wards, motivating them to work hard with the right attitude. The job impacts the quality of life, develops self-esteem, supports their family, and contributes to community development.

In what ways can GenAI contribute to the development of local entrepreneurship and small businesses in small towns?

GenAI empowers local entrepreneurship, offering opportunities for both seasoned entre- preneurs and individuals exploring new ventures. Entrepreneurs from small towns or those emotionally connected to such locations can partner with metro-based companies, focusing on local infrastructure, recruitment, training, and service delivery. This collaboration allows metro-based companies to handle customer-facing functions such as customer acquisition, marketing, compliance, finance, and legal while leveraging the unique advantages of small-town entrepreneurship.

Additionally, individuals or small groups can tap into online GenAI platforms and freelance opportunities, providing a flexible avenue for micro entrepreneurship. State governments can play a crucial role by partnering with colleges for GenAI-related training programs and encouraging local entrepreneurship. Organizing events and community forums can further raise awareness and showcase successful case studies, inspiring a new wave of entrepreneurial spirit in small towns.

Already, there are several companies across the country working from small towns and demon- strating that the model can indeed succeed.

What measures can be implemented to ensure the responsible and sustainable use of GenAI in small town development?

GenAI-driven jobs in small towns significantly contribute to reducing carbon footprint compared to city-based jobs, addressing issues like traffic congestion, unproductive commuting time, climate deterioration, and pollution. These environmental benefits align with the growing importance of Environmental, Social, and Governance (ESG) compliance for businesses, emphasizing the positive impact of GenAI on sustainability in the broader context. As more global companies, including some in India, embrace ESG standards, small town employees can actively participate in such endeavours.