< Back to all Articles

Intelligent document processing: The next-generation AI-based document processing

March, 2022

Introduction:

Intelligent document processing is a rapidly emerging solution that works on taking all the unstructured data and transforming it into a usable format by feeding it into business systems so the process can be automated.

Why do business processes need IDP?

At least 80% of data in any organization is unstructured and semi-structured, having emails, word documents, PDFs, images, and more where expected data is not in the same place every time, impeding the ability to access relevant files on demand. As a result, many organizations found managing volumes of documents manually a challenge and found various solutions to manage all the incoming documents.

The implementation of Intelligent Document Processing helps to avoid these mishaps and releases your staff from stressful and tiring manual data entry with its ability to read all the unstructured data and its massive database of labeled data points, incorporating AI technology known as transfer learning. There is no need for a model to be trained on thousands of documents in order to be accurate.

For example, Algonox had done invoice processing for a multinational ITES service provider using a combination of Algonox Cognitive Engine (Data extraction and validation platform powered by OCR and text analysis capabilities), workflow automation, and RPA, thereby extracting and validating the multiple fields and achieving:

• 87% Less rework.
• 65% Potential FTE savings.
• 62% Cost savings.



Read the full case study

Explore more with our case studies

What are the critical capabilities of the IDP?

Intelligent document processing saves all the data entry-related costs and increases both the speed and reliability of document processing.

• Ingest the documents to be processed from any of the sources: - shared folders, SFTP, ERP, email, or any 3rd party application through API Integrations.
• Extract (OCR + ML): any key critical data points from documents, such as fields and tables.
• Validate the extracted document data with any ERP/ Portal/ Master data.
• Export the validated and processed data to the downstream systems (ERPs - SAP/Oracle)
• Provides relevant analytics on the processed documents. - Dashboards, MIS reports, etc.,

The system automatically improves its performance and generates more business value, improving manageability, scalability, and avoiding OCR fatigue.

It allows automating the extraction of documents that only skilled staff could previously process, getting you closer to touchless processing, thereby future-proofing data extraction, reducing risk, and delivering higher performance.

IDP is the next generation of automation, capable of ingesting, extracting, and processing data from a variety of document formats. It does so by utilizing artificial intelligence technologies such as natural language processing (NLP), deep learning, computer vision, and machine learning (ML) to classify, categorize, and extract pertinent information, as well as validate the extracted data.

Benefits of IDP:

• Reduction in processing time.
• Improved accuracy.
• Cost savings up to 70%.
• 80% reduction in human resources.
• Built for unstructured data.

Where can we use IDP?

To process ANY documents of ANY Domain - Where the users spend time reading, validating, and processing the documents.

• Use IDP to process barcodes, manifests, invoices, and more for rapid supply chain operations from orders through accounts payable processes.
• Auto-process application forms for different products and fast-track instrument processing. Improve productivity by 60% with intelligent document processing.
• Use intelligent document processing to improve accuracy, consistency, and compliance during data collection and collation in a secure digital environment.
• Collect documents and data from all internal and external departments. Combine the data into centralized repositories and automatically generate weekly and consolidated bills to reap significant savings that can be passed on to customers.

Eg:

• Banks - cheques, stock statements, insurance documents. etc.,
• Accounts payable - invoices, purchase orders, etc.,
• Automotive industry - driver’s licenses, invoices, registrations, and insurance forms.
• Insurance : driver’s licenses, passports, and checks

How can you ensure good quality process documentation?

During document processing, it is important to be clear and concise, making sure that you do not leave any information that is important but not including anything that is unnecessary.

Documents may include screenshots of more complex aspects or formats that are difficult to explain; this is where users need to be careful. This way, when process improvement is being carried out, users can see why the process was modeled in this way in the first instance. Whenever processes are updated, the documentation should be updated too.

Algonox document processing tools often provide easy-to-follow steps which will make your documents consistent, ensure good quality and keep formatting simple and easy to read.

Algonox Cognitive Engine (ACE), for instance, is a one-stop platform that handles all the unstructured and semi-structured data, trains a sample for quality output, and saves up to 95% of your precious time.

• ACE extracts required data from documents.
• Validate the data using databases/ERP platforms or master data sources.
• Processes the output wherever required.

Schedule a demo

Conclusion:

Document processing used to be a completely manual task where more employees were required to engage in time-consuming, tedious tasks, causing brain drain and errors. Due to this, no time was found to engage in higher-value activities.

However, using the IDP platform turned out to be a plus point and key to learning what data is available, which components are relevant, and what business outcomes are expected with specific files. Moreover in 2020, the intelligent document processing market was worth USD 765.2 million. It is expected to reach USD 6,788 million by 2027, with an annual growth rate of 35.4 percent from 2021 to 2027 Source:Marketsandmarkets

< Back to all Articles