The Ultimate Guide to Intelligent Document Processing Software (2023)
Data has gone from being a by-product of business processes to being a
primary asset that drives business decisions. However, most organizations are
not prepared for this sudden transformation in the way data is percieved. The
lack of appropriate infrastructure to store and manage data is resulting in
organizations reaching a saturation point with their databases.
Sifting through such tremendous amounts of data to find bits of useful
information can be both a time and labor-intensive process. This is where AI
powered intelligent document processing software comes into play.
In this blog we will take you through intelligent document processing software,
how it works, benefits and what the future holds for intelligent document
processing software.
What is Intelligent Document Processing Software?
Intelligent document processing software is a form of business process automation technology that can scan, read, write, classify, organize, and extract information from structured, unstructured, and semi-structured data sets. Intelligent document processing software can be trained to scan specific document types, from handwritten documents to pdfs, word docs, spreadsheets and more
Intelligent Document Processing
vs Automated Document Processing
Intelligent Document Processing
- Intelligent document processing (IDP) digitizes paper documents and enables extractions of valuable information from structured and unstructured data.
- IDP uses machine learning and natural language processing to scan documents.
- IDP uses character recognition and AI to pre-process images for cleaner data extractions.
- IDP automatically redacts sensitive personal information from documents.
Automated Document Processing
- Automated document processing (ADP) is a technology that is used to digitize paper documents to make digital copies that can be indexed and added to a database.
- ADP only relies on Optical Character Recognition to scan documents.
- ADP does not use AI and ML technologies for clearer document processing.
- ADP does not offer sensitive information redaction.
How does Intelligent Document Processing Software Work?
Intelligent Document Processing Software utilizes multiple advanced technologies
in combination such as optical character recognition (OCR), Machine Learning
(ML), Artificial Intelligence (AI) and Natural Language Processing (NLP) to process
documents.
Let us have a quick look at how these technologies support intelligent document
processing.
Optical Character Recognition (OCR)
Supports scanning and extraction of structured, unstructured, or handwritten documents, and converting them into machine readable text.
Natural Language Processing (NLP)
Supports classification and organization of scanned documents by identifying relevant tags such as names, addresses, dates, occupation etc.
Machine Learning (ML)
is used to train the IDP software based on a large data set of labelled documents to support the recognition of specific information from commonly used document types for a business.
Artificial Intelligence (AI)
Supports end-to-end workflow automation of document processing, and resolving any bottlenecks in the process, it also helps incorporate automated as well as human in the loop validation for documents.
Benefits of Intelligent Document Processing Software
As data gains the perception of being an unofficial business currency, the benefits of intelligent document processing software reach far beyond just “document management”. Below are some of the essential business benefits of IDP.
Enhanced Operational Efficiency
IDP can boost turnaround time of business operations by eliminating manual data entry and documentation thus leading to faster order processing for enhanced operational efficiency.
Reduced Errors in Document Processing
Manual documentation and data entry is prone to human errors, which can cause losses and delays. Through automated intelligent document processing the accuracy of data can be boosted to up to 98%.
Cost Saving
Automated document processing can eliminate a significant chunk of labor from repetitive manual data entry thus freeing up valuable business resources. Additionally, through faster document processing, and lesser errors business can reduce losses related to inaccurate data.
Improved Business Scalability
IDP boosts employee productivity through touchless document processing. Additionally, it empowers business growth through data driven decision making by aggregating and classifying all organizational data into a single database for easier analytics.
Integration with Other Systems
Intelligent document processing software enables seamless integration of data across multiple systems. Thus, facilitating uninterrupted flow of data between crucial business systems such as CRM, accounting, Insurance Sales and Distribution Management software etc.
Simplified Customer Experience
Complicated forms and documentation degrade customer experience by asking customers to scan and upload documents manually. IDP eliminated repetitive scanning by improving the information extraction from handwritten documents and reduces the number of document scans by customers to one, thus simplifying customer experience.
Future of Intelligent Document Processing Software
As we venture further into the age of Artificial Intelligence, businesses are depending more on the power of data to make informed data-driven business decisions. With the global intelligent document processing software market poised to generate a revenue of over $5.2 Billion by 2027 with an annual growth rate of 37.5%, we will witness a widespread adoption of IDP software in various industries including, healthcare, finance, insurance, retail, governance and more.