LinkedIn Twitter Facebook

What is intelligent document processing? Overview, benefits, and use cases

Jacob Roseburrough
Jacob Roseburrough

Intelligent Document Processing (IDP) is a subset of the larger field of Artificial Intelligence (AI) that focuses on the automatic extraction of meaningful data from various types of documents. IDP is designed to streamline the document processing tasks and eliminate the need for manual intervention. The technology uses AI algorithms such as natural language processing (NLP), machine learning, and optical character recognition (OCR) to recognize patterns, classify documents, and extract information from them.

IDP can be used to process various types of documents, such as invoices, receipts, purchase orders, insurance claims, and contracts. It involves several steps, including document retreival, preprocessing, classification, extraction, validation, and integration. Let’s take a closer look at each of these steps.

Document retrieval

This is the first step in the IDP process, where the documents are gathered from various sources such as email, web portals, or file systems. The documents can be in different formats such as PDF, Word, Excel, or scanned images.

Preprocessing

In this step, the documents are pre-processed to remove any noise or distortions, such as skew or blur, that might affect the accuracy of the data extraction.

Classification

This step involves the classification of documents into different categories based on their content and structure. This is done using machine learning algorithms that learn from previous examples of document types.

Extraction

In this step, the relevant information is extracted from the documents. This is done using techniques such as OCR, NLP, and pattern recognition. The extracted data can include fields such as customer name, invoice number, date, and amount.

Validation

In this step, the extracted data is validated to ensure accuracy and completeness. This can involve comparing the data with existing databases or cross-checking it with other documents.

Integration

In the final step, the extracted data is integrated into the target system or database, such as an ERP or CRM system.

IDP has several benefits for organizations. It helps to reduce manual data entry and processing time, increase accuracy and efficiency, and improve compliance with regulations. It also allows employees to focus on more valuable tasks that require human intelligence, such as decision-making and customer service.

In conclusion, Intelligent Document Processing is an essential technology for organizations that deal with a large volume of documents. It can help them to streamline their processes, reduce costs, and improve their overall efficiency. With the advancements in AI technology, IDP is only going to become more sophisticated and effective in the years to come.

About WareHQ Labs

WareHQ Labs is an innovative firm developing software solutions to solve today’s most complex supply chain challenges.

Sign up for our
product updates