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Community Led Growth in Data Labeling & Annotation Companies

Santiago Coates

February, 29, 2024

6 min. reading

The gig economy is experiencing explosive growth, with the World Bank reporting that it currently accounts for 12% of the global labor market, and projections indicating further expansion soon. Within this landscape, the AI Data Labeling industry presents a ripe opportunity for companies to expand into new markets, driven by the increasing demand for high-quality data.

With the sector projected to reach a staggering USD 62.35 billion by 2027, and North America alone valued at USD 1,029 million in 2023 with a growth rate of 26.5%, it’s evident that the data labeling industry is on a significant growth trajectory. 

In this article, we explore how Airtm, with its vast community of digital entrepreneurs, is poised to support this industry’s expansion and facilitate mutually beneficial partnerships.

Airtm’s community is a growth accelerator

Airtm serves as a crucial partner in enabling companies to navigate and capitalize on the data annotation market. 

With 35.4% of the Airtm Community of digital entrepreneurs (we call them Airners, Airtm + Earners) dedicated to data labeling and strong partnerships with industry leaders like Scale AI, Airtm provides a robust platform for businesses to access skilled workers and drive growth. 

Apart from this, as seen in the graph, data labelers in the Airners Community are mainly from: 

  • South America: 17.74%
  • North and Central America: 6.55%
  • Asia: 26.64%
  • EMEA: 48.61%. Europe, Middle East, and Africa)

On the other hand, these are the leading regions by volume: 

  • South America: 16.48%
  • North and Central America: 26.07%
  • APAC: 41.04%
  • EMEA: 4.37% (Europe, Middle East, and Africa)

Engaging with the Airners Community simplifies and accelerates the process of reaching micro-workers in the Global South facilitating seamless engagement and collaboration. By working closely with partners like Scale AI, Airtm promotes earning opportunities to its engaged community of digital entrepreneurs through targeted campaigns and promotions across various channels.

Users' behavior after receiving a payment

Another important point to highlight is the behavior of most data labelers in the Airners community when they receive payments. 

Out of all the transactions on Airtm’s platform, ~45% of the volume is withdrawn by data labelers to their local currency in under 15 minutes through Airtm’s platform. We offer a wide range of withdrawal options, including over 500 payment methods, banks, and other digital wallets. Conversely, 18% opt for our users to withdraw to crypto. According to our insights, approximately 37% of the volume will be sent to another Airtm account belonging to a family member, or friend, or for work-related payments.

Out of the 45% volume withdrawn by users, 84% prefer using our P2P feature due to its faster speed rather than opting for direct transfers to their bank or local wallet, while 15.2% withdraw directly to their bank accounts.

Regarding the 18% volume withdrawn to crypto, 33% of users utilize P2P, while 67% withdraw it directly to another crypto wallet using our USDC integration with the Stellar Network.

Understanding how data labelers behave is crucial for AI data labeling companies because it gives valuable insights into what they prefer. This helps these companies design better payment systems and rewards, which ultimately makes users happier. Many labelers like to send their payments elsewhere, and Airtm is great for that. This information could also help companies pick the right payment platforms to use.

A new generation of digital pioneers

This vibrant digital ecosystem comprises motivated individuals who stand at the forefront of the digital economy. Representing a new generation of digital pioneers, members are committed to growth, knowledge, and fostering connections. 

With over 700k Airners successfully receiving or cashing out payments using Airtm, the platform empowers individuals to diversify their online income streams.

Demographically diverse, the community boasts over 75% of members aged between 18 and 35. Geographically, South America leads with 52.7%, followed by North and Central America (11.6%), Asia (18.9%), and EMEA (10.3%).

Scale AI and Airtm’s partnership for mutual growth

Scale AI, an Airtm partner since 2019, has experienced explosive growth, landing them at number 33 on the Forbes Cloud 100. Scale AI is a vital partner to companies like OpenAI, Nvidia, Meta, and Microsoft, and helps its customers deliver value from AI investments faster with better data by providing an end-to-end solution to manage the entire ML lifecycle. 

A key part of this solution involves the operation of a two-sided marketplace connecting companies in need of data annotation services with a network of skilled digital workers, in which Airtm contributed. “Airtm helped us expand in many countries easily and at scale. They have supported us entirely and provided a great experience from launching collaborative growth campaigns to fraud detection flags and workflows.

Looking at specific regions, countries like Kenya, India, Venezuela, Egypt and Philipines play significant roles in the data labeling workforce. With their skilled labor forces and growing interest in AI, they contribute substantially to the industry’s growth.

Moreover, Airtm addresses critical challenges faced by the industry, such as inefficient payment solutions that exclude many users. By offering streamlined payment processes and ensuring fair compensation, Airtm enhances the viability of micro-work and fosters a more inclusive gig economy ecosystem.

Let numbers speak for themselves

The partnership between Scale AI and Airtm, through their Remotasks platform, yielded impressive results between 2022 and 2023, with a remarkable 62% increase in the number of payment transactions and an astounding 600% surge in volume. Additionally, Scale AI experienced a 30% growth in their community, reflecting the impactful collaboration between the two platforms. With users conducting transactions in 190 countries, the partnership proved to be a catalyst for global expansion and accessibility.

At the heart of this successful collaboration lies a multifaceted approach to growth and engagement. Airtm played a pivotal role in expanding Scale AI’s community by leveraging its extensive audience through a comprehensive package of growth strategies, including ambassador and influencer programs, social media initiatives, email communications, and more. These efforts not only increased user acquisition but also fostered a sense of community and engagement among users.

Today, Airtm serves as a strategic partner for a total of 60 companies that use the Airner community to engage with the largest community of digital entrepreneurs and workers. This underscores the breadth and depth of Airtm’s impact as a trusted ally for businesses seeking to navigate the complexities of the digital landscape.

By joining forces with Airtm, you’ll gain access to our vast community of digital entrepreneurs and cutting-edge payment solutions designed to streamline your operations and maximize your impact. Whether you’re looking to expand into new markets, enhance your payment infrastructure, or tap into untapped talent pools, Airtm has the tools and expertise to help you succeed.

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