What is Intelligent document processing?

Intelligent Document Processing (IDP) is a technology-driven solution that uses a combination of artificial intelligence (AI) and automation to process and manage various types of documents. The goal of IDP is to streamline and optimize document-centric business processes by extracting valuable information from documents, reducing manual effort, and enhancing efficiency. Here are key aspects of Intelligent Document Processing:

1. Document Capture: IDP involves capturing data from diverse document sources, including paper documents, digital files, emails, and more. Optical Character Recognition (OCR) technology may be used to convert text from scanned documents into machine-readable text.

2. Data Extraction: Once documents are captured, AI algorithms analyze and extract relevant information from them. This can include structured data (such as names, dates, and numbers) and unstructured data (such as paragraphs of text). Machine learning models may be employed to improve extraction accuracy over time.

3. Document Classification: IDP systems often include the ability to classify documents into predefined categories or types. This helps in routing the documents to the appropriate workflows or processes.

4. Data Validation: Extracted data is validated for accuracy and consistency. This step may involve cross-referencing information with databases, applying business rules, or checking against predefined criteria.

5. Workflow Integration: The extracted and validated data is integrated into existing business processes or software applications. This could involve populating databases, updating CRM systems, generating reports, or initiating other automated tasks.

6. Automation: IDP enables automation of tasks that traditionally required manual intervention. For instance, it can automate invoice processing, contract management, and other document-intensive processes.

7. Machine Learning and Training: IDP systems can learn and adapt to specific document types and formats over time. Users can train the system by providing feedback and corrections, enhancing its ability to accurately process diverse documents.

8. User Interfaces: Many IDP solutions come with user-friendly interfaces that allow users to monitor and manage document processing workflows. These interfaces may also provide tools for configuring and customizing the system.

Intelligent Document Processing is widely used in industries with significant document handling requirements, such as finance, insurance, healthcare, legal, and more. It helps organizations improve accuracy, reduce manual errors, save time, and enhance overall operational efficiency by automating document-related tasks.