It is a data-driven world, and businesses of all types handle a plethora of documents like reports, invoices, forms and contracts. Using manpower alone to process these documents can be error-prone, time-consuming, and expensive. Intelligent Document Processing, an emerging technology, holds much promise to change this uncomfortable status quo. 

In short, IDP utilizes artificial intelligence (AI) and machine learning (ML) to automate the processing of documents. At its core, it is a workflow automation technology that can perform tasks like scanning, reading, extracting, categorizing, and organizing data from a variety of document types including paper, PDF, and spreadsheets. 

Automating the document process can enable the handling of unstructured data from images, emails, and the like in addition to structured data from relational databases.

How Does it Work? 

AI document processing is an evolution from traditional document processing methods. Whereas legacy systems relied on manually performed data entry and automation based on rigid rules, it utilizes AI document extraction and machine learning to intelligently capture, classify, extract, and validate data from a wide array of document formats. 

It makes use of powerful algorithms to comprehend document content like how a human would. It can differentiate between document types, extract pertinent data from specific fields, and even interpret textual meaning and context. This allows IDP to bring automation into challenging tasks within document processes that were hitherto impossible to automate. 

Let’s assume an insurance company receives thousands of claims forms every day. A significant workforce would be needed to manually process these forms, and the process would be highly error prone. With IDP, the company could bring automation into the process. Tasks like data extraction, validation, claim routing, and processing could be done efficiently and accurately, saving time and resources in the process.

What Business Pain Points Can Be Solved by Automating Document Workflows? 

Intelligent document automation helps address multiple pain points associated with manually processing documents. Here are some: 

  • Human-powered data entry is expensive as data entry specialists need to be recruited for this purpose. 
  • Data entry using manpower is time consuming and highly inefficient. 
  • Manual data entry is error-prone, thus leading to incorrect data analysis and decisions. 
  • Human-driven data entry often causes data integration issues as different individuals may enter data differently. 
  • Manual data entry is challenging to scale. 
  • Personnel-powered data entry can make compliance a challenge and increase the risk of data breaches. 
  • Manual data entry often leads to long customer wait times and dissatisfaction. 

As evident, manual data entry is highly inefficient and prone to errors. IDP can help overcome the weaknesses of manual data processing. 

Here’s an example to illustrate the power of this technology. 

In a company that receives hundreds of invoices daily, employees using manual processing would spend hours on end entering data from every invoice into their accounting system. However, using IDP, the process becomes seamless. The system automatically captures the data on the invoice, extracts pertinent information such as date, invoice number, amount, and vendor name, and integrates these details directly into the accounting system, significantly shortening processing time.

Benefits of Implementing AI Document Processing 

The adoption of IDP offers a host of benefits for businesses across multiple sectors: 

  • Increased efficiency: It brings automation to document processing and frees employees to focus on higher-value initiatives. 
  • Higher accuracy: It negates mistakes associated with manual data entry and leads to increased accuracy and improved decision-making. 
  • Cost savings: It helps reduce labor costs and processing time, and also minimizes errors, leading to considerable cost savings. 
  • Better scalability: IDP solutions are capable of easily scaling to handle increased document volumes and changing business requirements. 
  • Improved CX: It enables quicker, more accurate document handling and thus boosts customer delight and loyalty. 
  • Enhanced compliance: It empowers businesses to comply with regulatory necessities by ensuring accurate data recording and secure document handling. 
  • Ability to extract unstructured data: It makes extracting data from unstructured sources like emails, videos, contracts, and legal documents straightforward. 

Features of Intelligent Document Processing 

What features make IDP a cutting-edge solution? Here’s a closer look at some of them: 

  • Automated document classification: It automatically categorizes documents depending on content, type, or other criteria, thus allowing for efficient routing and processing. 
  • Intelligent data extraction: It extracts pertinent data from documents, both structured and unstructured, using AI and ML algorithms. 
  • Data validation and verification: It is able to validate extracted data based on predefined rules, external databases, or even human review, thus guaranteeing data integrity. 
  • Automated workflow management: It enables the automation of document-based workflows, routing documents to relevant departments or individuals for further action. 
  • Exception handling: It pinpoints anomalies or exceptions within documents that require human intervention for resolution. 
  • Scalability and adaptability: IDP solutions scale as required to handle large document volumes and adapt to evolving business needs. 
  • Integration capabilities: IDP services are able to integrate seamlessly with existing business systems to streamline data processes. 
  • Reporting and analytics: It offers insights into document management performance, thus empowering businesses to pinpoint bottlenecks, track efficiency, and optimize processes. 

The Key Components of an Intelligent Document Processing Solution 

A capable IDP solution consists of several components working together to automate workflows for document processing: 

  • Optical Character Recognition (OCR): OCR technology transforms scanned documents or images into machine-readable text, allowing the IDP mechanism to analyze and extract data. 
  • Machine Learning (ML): ML algorithms are trained using large datasets of documents to identify patterns, categorize document types, and extract pertinent information. 
  • Natural Language Processing (NLP): NLP enables the IDP solution to comprehend the context and meaning of text, allowing it to extract insights and take informed decisions. 
  • Data extraction and validation: IDP tools extract data from specified fields within documents and validate for accuracy against external databases or pre-set rules. 
  • Workflow automation: IDP integrates with existing business systems to automate document-related workflows like contract management, invoice processing, and customer onboarding. 

The Real-World Applications of Intelligent Document Processing 

IDP is transforming document-centric processes across a wide range of industries. 

For instance, within financial services, it is used to ensure KYC and AML compliance, process invoices, and automate loan applications. 

In healthcare, AI document processing is used to process insurance forms, patient records, and medical claims. 

Within insurance, it is used in underwriting, policy administration, and automating claims processing. 

In the legal realm, it is useful in conducting due diligence, managing legal documents, and reviewing contracts. 

Within the manufacturing sector, it helps process shipping documents, invoices, and purchase orders.

Key Considerations While Using Automated Document Processing

Though IDP offers numerous advantages, it’s essential to consider certain factors: 

  • Make sure your document automation service complies with data privacy regulations and protects sensitive information. 
  • Remember that seamless integration with existing business systems is critical for maximizing document automation benefits. 
  • Regularly review the accuracy of your solution and implement thorough validation mechanisms. 
  • Prepare team members for the transition to an automated document processing environment and offer training as required. 

IDP services are made more powerful and secure when offered by vendors that consider data security and ease of use to be core priorities. 

The Future of AI Document Processing 

There is a bright future ahead for this technology, especially with ongoing advancements in AI and ML setting the stage for more sophisticated capabilities. 

Firstly, there will be increased automation, as AI document processing begins to automate even harder document-oriented tasks, thus drastically reducing the need for human intervention. 

Secondly, document systems will develop in intelligence and become better at comprehending language-specific nuances and extracting deeper insights from within a greater variety of documents. 

Finally, the adoption of this technology will increase across the business world, transforming how organizations handle documents

Ready to Leverage Intelligent Document Processing to Supercharge Your Document Workflows? 

Doubtless, data extraction services powered by AI are the future of document management. 

If your business is all set to make use of this technology for your document needs, Aspire Systems can be your trusted partner. 

Aspire System’s AI-technology based document services offer 30% to 200% ROI while enhancing productivity by 70% and boasting an accuracy rate of 99%. 

Our experts offer the entire gamut of document-related services including advanced services like: 

  • Harvesting web-based data with scraping 
  • Accessing data programmatically with APIs 
  • Retrieving data from databases 
  • Analyzing and mining unstructured data 
  • Performing ETL (Extract, Transform, Load) actions 
  • Extracting data from legacy systems 

Whatever your document processing needs may be, our bespoke services have you covered. 

Learn more about our approach to IDP and business success through our informative demonstration videos.

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