What is intelligent document processing?

Intelligent document processing is an umbrella term that refers to a set of solutions and tools that rely on technologies such as machine learning (ML), computer vision, cognitive automation, robotic process automation (RPA), and natural language processing (NLP) to automate and accelerate document processing. IPD goes beyond simply processing data; it allows automated tools to understand what the document is about and the relevance of the data it contains.

The enterprise IDP process consists of five phases:

• Collection
  The first stage of IDP is focused on gathering paper and digital documents from a variety of available content sources. Hardware and software integrations allow IDP tools to perform collection processes at scale.
• Pre-processing
  Before the documents can be fully analyzed, they must meet certain quality standards. Document pre-processing automatically applies a range of techniques to improve document quality, including cropping, binarization, deskewing, and noise reduction.
• Classification
  Next, the IDP tool reviews the digitized document, detects its beginning and end, and divides the information it presents into various categories based on type, content, structure, and/or format. This stage may apply computer vision algorithms to recognize visual patterns and NLP techniques to group information based on subject.
• Extraction
  With the information in the document correctly classified, textual data must next be extracted and digitized using OCR and ICR technologies combined with ML capabilities to ensure consistency and accuracy.
• Validation
  Finally, the extracted data is authenticated using a series of validation rules and AI-enhanced techniques, enhanced with RPA technologies. This helps ensure that the extracted data is accurate and reliable. Some organizations prefer to include a human authenticator in this step to help the AI improve and learn more quickly.
  

There are few things as important to the success of modern business organizations than reliable, actionable data. Unfortunately, it is estimated that the majority of available business data is contained in unstructured formats, including paper documents, images, emails, and PDFs. Without proper formatting and analysis of this data, organizations in all industries may miss out on vital insights.

IDP empowers organizations to turn unstructured data into structured data, without the major time and cost investment that naturally accompanied manual data transfer. And by incorporating advanced AI solutions, these organizations can likewise automate the classification and analysis of said data, turning raw information into a clearer understanding of the business, its industry, and its customers.

Top benefits of intelligent data processing include:

It is theorized that as much as 80% of business data currently resides in unstructured formats. This represents massive volumes of information. For a single employee—or even a large team of employees—to reformat that data manually would take a significant amount of time. 

IDP, on the other hand, can digitize, classify, extract, and analyze large amounts of data in microseconds, without ever having to worry about getting tired. This not only allows businesses to more quickly transition unstructured data into more usable formats, but also frees up valuable employees to perform more strategy-relevant tasks.

Going hand in hand with faster document processing, the savings associated with IDP are another major advantage. By reducing processing times, businesses can begin putting newly structured data to work almost immediately to inform decisions and improve returns. At the same time, IDP tools help organizations save on costs related to operational processes and allow them to accomplish more without having to hire more. Together, this amounts to a better return on investment for IDP than is traditionally possible with other document processing solutions.

Human data digitization specialists are not only limited in terms of how much they can accomplish in a given amount of time; they are also hampered by human error. A simple slip of a keystroke can render otherwise-valuable data completely unusable—or even totally misleading.

IDP cuts out the need for manual data input. This means that data errors are virtually eliminated, and human review is only required when issues or anomalies within the data present themselves. With the improved data quality made possible through IDP, organizations can act on data insights with confidence.

Data security is a major concern, not only for modern businesses and their customers, but also for regulatory bodies tasked with ensuring that data-security best practices are being followed. IDP simplifies security and compliance, applying automation to ensure that data-protection regulations are always properly implemented.

Additionally, digital records associated with IDP processes make compliance auditing a less-complex task, providing a clear ‘trail’ that auditors can follow when verifying that the digital system and the data it contains has the correct safeties in place to meet regulatory standards.

The most effective IDP tools and solutions are designed to integrate easily with existing programs and hardware. Rather than having to make costly, time-consuming adjustments to an existing tech stack, companies can often use IDP out of the box, connecting seamlessly with the systems they are currently using.

Seamless integration removes a major hurdle of IDP adoption and makes it easier than ever to begin enjoying the benefits of intelligent document digitization and processing.

Unlike human teams that must grow and hire new talent to meet increased work volume, IDP is capable of operating at scale without significantly increasing costs. Applying automation to vital processes across the organization, IDP expands to meet business needs, and continues to prove its value regardless of how much data is sent its way.