{"id":58519,"date":"2025-08-20T19:05:22","date_gmt":"2025-08-20T13:35:22","guid":{"rendered":"https:\/\/www.techjockey.com\/blog\/?p=58519"},"modified":"2025-08-20T19:05:33","modified_gmt":"2025-08-20T13:35:33","slug":"intelligent-document-processing","status":"publish","type":"post","link":"https:\/\/www.techjockey.com\/blog\/intelligent-document-processing","title":{"rendered":"How Intelligent Document Processing Improves Business Efficiency with AI?"},"content":{"rendered":"\n<style>\n.lh-callout, .lh-featured-snippet {\n    border: 1px solid #e9e9ea;\n    border-left: 8px solid #ff492c;\n    border-radius: 20px;\n    margin-bottom: 20px;\n    padding: 35px;\n    position: relative;\n}\n<\/style>\n<div class=\"lh-callout lh-featured-snippet\" style=\"background-color:#FAC7B917\">\n  <p><strong>Quick Summary<\/strong><\/p>\n  <ul>\n    <li>Intelligent Document Processing (IDP) helps extract data from documents, speeding up business document processing.<\/li>\n    <li>Works with all types of documents: forms, invoices, mail, and more.<\/li>\n    <li>Saves time by automating data entry and performing automatic checks.<\/li>\n    <li>Used across industries like finance, healthcare, and HR.<\/li>\n    <li>Now integrated with generative AI for smarter insights and document summaries.<\/li>\n  <\/ul>\n<\/div>\n\n\n\n<p>Did you know that many enterprises deal with almost 80% unstructured data? It is scattered everywhere around emails, PDFs, invoices, notes, forms, and contracts.<\/p>\n\n\n\n<p>What issue arises with this?<\/p>\n\n\n\n<p>The answer is that it makes data inaccessible to most business systems, which makes business workflows complicated.<\/p>\n\n\n\n<p>From using OCR technology to now entering generative AI, IDP has come a long way.<\/p>\n\n\n\n<p>Intelligent Document Processing uses automation to make document scanning and understanding data easier than before.<\/p>\n\n\n\n<p>Confused?<\/p>\n\n\n\n<p>Let\u2019s understand it in simple terms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-intelligent-document-processing-idp\"><span class=\"ez-toc-section\" id=\"what_is_intelligent_document_processing_idp\"><\/span>What is Intelligent Document Processing (IDP)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Intelligent Document Processing (IDP) is a kind of technology that integrates artificial intelligence document processing, machine learning, and natural language processing to read, comprehend, extract, classify, and process the data present in different types of documents.<\/p>\n\n\n\n<p>It\u2019s not like traditional ways of extracting data, like OCR tools. IDP works with all types of documents:<\/p>\n\n\n\n<ul>\n<li>Structured ones, such as forms\/spreadsheets<\/li>\n\n\n\n<li>Semi-structured invoices or purchase orders<\/li>\n\n\n\n<li>Unstructured documents that include emails, handwritten notes, contracts, etc.<\/li>\n<\/ul>\n\n\n\n<p>In very simple terms, intelligent document processing reads any format document and handles data entry for you. It\u2019s accurate and fast.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-quick-look-at-the-evolution-of-idp\"><span class=\"ez-toc-section\" id=\"a_quick_look_at_the_evolution_of_idp\"><\/span>A Quick Look at the Evolution of IDP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Document processing journey has upgraded with time with new technologies. Here\u2019s a look:<\/p>\n\n\n\n<ol>\n<li><strong>Entering data manually:<\/strong> It was when all the data had to be entered manually. Still, people do it, but it consumes a lot of time.<\/li>\n\n\n\n<li><strong>OCR Software: <\/strong>It\u2019s still in use and is used to turn scanned text into machine-readable text. <a href=\"https:\/\/www.techjockey.com\/category\/ocr-software\">OCR software<\/a> is useful but is limited in its capabilities.<\/li>\n\n\n\n<li><strong>Intelligent Document Processing:<\/strong> Next came IDP. It has more added capabilities by using AI, ML, and NLP. It not only extracts text but also understands and acts on it.<\/li>\n\n\n\n<li><strong>Generative AI &amp; LLMs:<\/strong> It\u2019s an add-on to IDP. It understands data and generates insightful summaries also and suggests what can be done next.<\/li>\n<\/ol>\n\n\n\n<p>With this evolution of intelligent <a class=\"wpil_keyword_link\" href=\"https:\/\/www.techjockey.com\/blog\/document-automation-software\"   title=\"document automation\" data-wpil-keyword-link=\"linked\"  data-wpil-monitor-id=\"1616\">document automation<\/a>, you can do more than what was previously impossible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-intelligent-document-processing-work\"><span class=\"ez-toc-section\" id=\"how_does_intelligent_document_processing_work\"><\/span>How Does Intelligent Document Processing Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are a few pointers to understand the working of intelligent document processing:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-document-ingestion\"><span class=\"ez-toc-section\" id=\"1_document_ingestion\"><\/span>1. Document Ingestion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The system ingests documents from various sources:<\/p>\n\n\n\n<ul>\n<li>Email<\/li>\n\n\n\n<li>Scanned images<\/li>\n\n\n\n<li>Web portals<\/li>\n\n\n\n<li>Enterprise systems<\/li>\n\n\n\n<li>Mobile uploads<\/li>\n<\/ul>\n\n\n\n<p>Formats can include PDF, Word, images (JPG, PNG), or even handwritten paper.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-preprocessing\"><span class=\"ez-toc-section\" id=\"2_preprocessing\"><\/span>2. Preprocessing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Next is document cleaning using computer vision. It includes adjusting contrast, removing noise, and deskewing it so text is properly aligned.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-intelligent-document-recognition-amp-classification\"><span class=\"ez-toc-section\" id=\"3_intelligent_document_recognition_classification\"><\/span>3. Intelligent Document Recognition &amp; Classification<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Here, it uses deep learning. IDP systems recognize the type of document using trained models. It finds whether it&#8217;s an invoice, contract, resume, or pay stub.<\/p>\n\n\n\n<p>Some tools are capable of understanding 190+ languages, making them usable worldwide.<\/p>\n\n\n\n<p>Classification is crucial because it helps in knowing which rules or models to apply next.<\/p>\n\n\n\n<div class=\"wp-block-tj-custom-product-block-custom-product-card custom-product-card-plugin-style\" id=\"tagged_prod_container_21319\"><h3><span class=\"ez-toc-section\" id=\"nanonets_ocr\"><\/span>Nanonets OCR<span class=\"ez-toc-section-end\"><\/span><\/h3><input type=\"hidden\" name=\"tagged_product[]\" value=\"21319\"\/><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-ocr-and-intelligent-data-extraction\"><span class=\"ez-toc-section\" id=\"4_ocr_and_intelligent_data_extraction\"><\/span>4. OCR and Intelligent Data Extraction<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Here comes the role of OCR software &#8211; a key technology in IDP. OCR (Optical Character Recognition) converts printed or handwritten text into digital characters.<\/p>\n\n\n\n<p>But today, it\u2019s not just simple OCR. There are four types:<\/p>\n\n\n\n<ul>\n<li><strong>Standard OCR:<\/strong> This compares the scanned text to known fonts\/templates.<\/li>\n\n\n\n<li><strong>Intelligent Character Recognition (ICR):<\/strong> This is the one that uses machine learning algorithms to comprehend different handwritings and fonts.<\/li>\n\n\n\n<li><strong>Intelligent Word Recognition (IWR):<\/strong> Again, as the name suggests, it recognizes the context of every word.<\/li>\n\n\n\n<li><strong>Optical Mark Recognition (OMR): <\/strong>It identifies symbols or check boxes, logos, or watermarks present in the document.<\/li>\n<\/ul>\n\n\n\n<p>When these three technologies are used in combination, everything becomes extracted clearly, even when the layout varies per document.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-natural-language-processing-nlp\"><span class=\"ez-toc-section\" id=\"5_natural_language_processing_nlp\"><\/span>5. Natural Language Processing (NLP)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once the text is extracted, NLP helps understand its context. For example:<\/p>\n\n\n\n<ul>\n<li>What\u2019s the due date on this invoice?<\/li>\n\n\n\n<li>Who is the vendor?<\/li>\n\n\n\n<li>Is this contract renewal automatic?<\/li>\n<\/ul>\n\n\n\n<p><strong>NLP combines:<\/strong><\/p>\n\n\n\n<ul>\n<li>Semantic &amp; syntactic analysis (computational linguistics)<\/li>\n\n\n\n<li>ML for grammar\/colloquialisms\/sarcasm<\/li>\n\n\n\n<li>Deep learning for complex pattern recognition<\/li>\n<\/ul>\n\n\n\n<p>It\u2019s especially powerful for extracting meaning from emails, contracts, or support tickets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-data-validation\"><span class=\"ez-toc-section\" id=\"6_data_validation\"><\/span>6. Data Validation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The extracted data is then validated. This might involve:<\/p>\n\n\n\n<ul>\n<li>Matching against a purchase order system<\/li>\n\n\n\n<li>Ensuring invoice amounts add up correctly<\/li>\n\n\n\n<li>Flagging mismatches based on business rules<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-7-workflow-automation-amp-integration\"><span class=\"ez-toc-section\" id=\"7_workflow_automation_integration\"><\/span>7. Workflow Automation &amp; Integration<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once the data is validated, the clean data moves to downstream systems like <a class=\"wpil_keyword_link\" href=\"https:\/\/www.techjockey.com\/category\/erp-software\"   title=\"ERP\" data-wpil-keyword-link=\"linked\"  data-wpil-monitor-id=\"1615\">ERP<\/a>, CRM, HRMS, etc. With the help of RPA (Robotic Process Automation), many tasks like updating records, initiating payments, or sending alerts are automated.<\/p>\n\n\n\n<div class=\"wp-block-tj-custom-product-block-custom-product-card custom-product-card-plugin-style\" id=\"tagged_prod_container_2097\"><h3><span class=\"ez-toc-section\" id=\"laserfiche\"><\/span>Laserfiche<span class=\"ez-toc-section-end\"><\/span><\/h3><input type=\"hidden\" name=\"tagged_product[]\" value=\"2097\"\/><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-8-continuous-learning\"><span class=\"ez-toc-section\" id=\"8_continuous_learning\"><\/span>8. Continuous Learning<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is what makes IDP intelligent. With each document processed, the system learns:<\/p>\n\n\n\n<ul>\n<li>Common errors<\/li>\n\n\n\n<li>Format variations<\/li>\n\n\n\n<li>User feedback<\/li>\n<\/ul>\n\n\n\n<p>This learning makes IDP more accurate and adaptable over time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-9-reporting-amp-analytics\"><span class=\"ez-toc-section\" id=\"9_reporting_analytics\"><\/span>9. Reporting &amp; Analytics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Modern IDP tools track metrics such as:<\/p>\n\n\n\n<ul>\n<li>Processing speed<\/li>\n\n\n\n<li>Error rates<\/li>\n\n\n\n<li>Types of flagged issues<\/li>\n\n\n\n<li>Document volume trends<\/li>\n<\/ul>\n\n\n\n<p>These insights help teams optimize workflows and improve business decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-technologies-behind-idp\"><span class=\"ez-toc-section\" id=\"key_technologies_behind_idp\"><\/span>Key Technologies Behind IDP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here\u2019s a summary of core technologies that make IDP work:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Technology<\/th><th>Role<\/th><\/tr><\/thead><tbody><tr><td><strong>OCR Software<\/strong><\/td><td>Converts scanned or image-based text into machine-readable format<\/td><\/tr><tr><td><strong>ICR \/ IWR \/ OMR<\/strong><\/td><td>Recognizes handwriting, words, symbols, and marks<\/td><\/tr><tr><td><strong>NLP<\/strong><\/td><td>Understands language, context, and sentiment<\/td><\/tr><tr><td><strong>ML Models<\/strong><\/td><td>Learn and adapt to new layouts and formats<\/td><\/tr><tr><td><strong>Computer Vision<\/strong><\/td><td>Enhances scanned images and detects structure<\/td><\/tr><tr><td><strong>RPA<\/strong><\/td><td>Automates repetitive tasks post-processing<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-idp-vs-automated-document-processing\"><span class=\"ez-toc-section\" id=\"idp_vs_automated_document_processing\"><\/span>IDP vs. Automated Document Processing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>People often get confused between these two terms, but what if I tell you they are different? Let\u2019s understand:<\/p>\n\n\n\n<ul>\n<li><strong>Automated Document Processing: <\/strong>Focuses mainly on digitizing paper &#8211; creating searchable, indexed documents. Good for archiving.<\/li>\n\n\n\n<li><strong>Intelligent Document Processing: <\/strong>Goes far beyond. It reads, understands, and acts on the data. It&#8217;s a complete business process automation tool, not just a digitizer.<\/li>\n<\/ul>\n\n\n\n<p>So, while automated processing makes data accessible, IDP makes it actionable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-businesses-are-investing-in-idp\"><span class=\"ez-toc-section\" id=\"why_businesses_are_investing_in_idp\"><\/span>Why Businesses are Investing in IDP?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let\u2019s get practical. Here are the key benefits of adopting IDP:<\/p>\n\n\n\n<ul>\n<li><strong>Better Accuracy<\/strong>: IDP reduces human error drastically. While manual entry has an error rate of 3\u20135%, IDP accuracy often exceeds 95% and improves with time.<\/li>\n\n\n\n<li><strong>Huge Cost Savings<\/strong>: Manual document processing costs $6\u2013$8 per document. With IDP, this can drop by 70\u201390%.<\/li>\n\n\n\n<li><strong>Time Efficiency<\/strong>: Documents are processed in seconds, freeing up employees from hours of data entry.<\/li>\n\n\n\n<li><strong>Scalable Operations<\/strong>: From 100 to 1 million documents, IDP handles it all without the need to expand teams.<\/li>\n\n\n\n<li><strong>Improved Compliance<\/strong>: With full audit trails, document versioning, and data validation, companies meet regulatory standards more easily.<\/li>\n\n\n\n<li><strong>Employee Satisfaction<\/strong>: Let people focus on meaningful work. IDP takes care of the repetitive stuff.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-tj-custom-product-block-custom-product-card custom-product-card-plugin-style\" id=\"tagged_prod_container_5544\"><h3><span class=\"ez-toc-section\" id=\"onbase_\"><\/span>OnBase <span class=\"ez-toc-section-end\"><\/span><\/h3><input type=\"hidden\" name=\"tagged_product[]\" value=\"5544\"\/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-intelligent-document-processing-idp-use-cases\"><span class=\"ez-toc-section\" id=\"intelligent_document_processing_idp_use_cases\"><\/span>Intelligent Document Processing (IDP) Use Cases<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IDP is already making an impact across industries:<\/p>\n\n\n\n<ul>\n<li>In Healthcare, you can extract patient information from medical records. It helps you digitize prescriptions and lab reports. You can also automate insurance claim validations.<\/li>\n\n\n\n<li>Finance teams can automate invoice processing and save time. You can create expense reports and also extract data from receipts and Pos.<\/li>\n\n\n\n<li>Legal firms can analyze contract clauses with NLP. You can extract deadlines and obligations, and also process court records for litigation.<\/li>\n\n\n\n<li>In Logistics, it helps with processing shipping documents, validating customs permits, tracking inventory and delivery slips, and more.<\/li>\n\n\n\n<li>The human resource team can parse resumes and candidate profiles, automate payroll inputs, extract leave records, and timesheets.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-challenges-with-idp-and-how-they-re-being-solved\"><span class=\"ez-toc-section\" id=\"challenges_with_idp_and_how_they8217re_being_solved\"><\/span>Challenges with IDP And How They&#8217;re Being Solved<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every technology comes with its own set of challenges. IDP is no different. Some common roadblocks include:<\/p>\n\n\n\n<ul>\n<li>Dealing with poor-quality scans<\/li>\n\n\n\n<li>Understanding regional languages or handwriting<\/li>\n\n\n\n<li>Frequent changes in document formats<\/li>\n\n\n\n<li>Security and data privacy concerns<\/li>\n<\/ul>\n\n\n\n<p>However, modern IDP solutions are overcoming these through:<\/p>\n\n\n\n<ul>\n<li>AI-powered image enhancement<\/li>\n\n\n\n<li>Multilingual NLP engines<\/li>\n\n\n\n<li>Continual learning models<\/li>\n\n\n\n<li>Role-based access and encryption protocols<\/li>\n<\/ul>\n\n\n\n<p>So while IDP isn\u2019t perfect, it\u2019s upgrading itself fast and becoming smarter and more adaptable with each passing year.<\/p>\n\n\n\n<div class=\"wp-block-tj-custom-product-block-custom-product-card custom-product-card-plugin-style\" id=\"tagged_prod_container_28787\"><h3><span class=\"ez-toc-section\" id=\"textsnap\"><\/span>TextSnap<span class=\"ez-toc-section-end\"><\/span><\/h3><input type=\"hidden\" name=\"tagged_product[]\" value=\"28787\"\/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-future-of-idp\"><span class=\"ez-toc-section\" id=\"the_future_of_idp\"><\/span>The Future of IDP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With the rise of Large Language Models (LLMs) and <a href=\"https:\/\/www.techjockey.com\/category\/artificial-intelligence\">Generative AI software<\/a>, IDP is entering a new era.<\/p>\n\n\n\n<p>Now, IDP can:<\/p>\n\n\n\n<ul>\n<li>Summarize documents<\/li>\n\n\n\n<li>Translate across languages<\/li>\n\n\n\n<li>Identify tone, urgency, or risk<\/li>\n\n\n\n<li>Generate structured reports from raw data<\/li>\n<\/ul>\n\n\n\n<p>This next wave of IDP means that even unstructured and contextual documents can be processed intelligently at scale.<\/p>\n\n\n\n<p><strong>Final Thoughts<\/strong><\/p>\n\n\n\n<p>If you are a small company dealing with 50 invoices per month or a large one that has to extract data from thousands of emails, IDP is going to help you.<\/p>\n\n\n\n<p>It saves your time, money, and effort. What could be better than this?<\/p>\n\n\n\n<p>With technologies like OCR, NLP, ML, and AI running in the background, you get everything at your fingertips.<\/p>\n\n\n\n<p>Now, the question is:<br>If your competitors are adopting IDP, can you afford not to?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Quick Summary Intelligent Document Processing (IDP) helps extract data from documents, speeding up business document processing. Works with all types of documents: forms, invoices, mail, and more. Saves time by automating data entry and performing automatic checks. Used across industries like finance, healthcare, and HR. Now integrated with generative AI for smarter insights and document [&hellip;]<\/p>\n","protected":false},"author":214,"featured_media":58551,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9343],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v22.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Intelligent Document Processing Improves Business with AI?<\/title>\n<meta name=\"description\" content=\"Discover how Intelligent Document Processing automates data extraction with AI, OCR, and NLP for faster, error-free workflows.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.techjockey.com\/blog\/wp-json\/wp\/v2\/posts\/58519\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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