Data is everywhere, and there is no shortage of this information as most organizations are overwhelmed with huge volumes of data, specifically unstructured data. Whether it is invoices, contracts, emails, or images, the real challenge is efficiently processing this data to derive insights. Intelligent document processing (IDP) comes in to revolutionize the way businesses manage documentation and data processing.
What is intelligent document processing
Intelligent document processing uses advanced technologies like artificial intelligence (AI) and machine learning. It automates extracting, classifying, and analyzing data from different document types. Traditional methods primarily utilize manual data input and basic optical character recognition (OCR) technologies for processing, whereas IDP emulates human understanding and context correlation which results in better content interpretation. This feature is important because 80-90% of business data is unstructured and cannot be used effectively.
Benefits of Intelligent Document Processing
Intelligent Document Processing offers many benefits, including:
- Operational Efficiency: Manual data entry takes time and is susceptible to human error. IDP automates these processes, considerably reducing the time to extract and enter data. Such efficiency lets employees spend their time on more value-added work instead of tedious data management.
- Reduce Costs: Automation eliminates the need for manual efforts, saving money. For example, organizations automating the processing of invoices have reduced costs by as much as 80%. This monetary advantage is particularly notable for companies needing to process a large number of documents daily.
- Improved Accuracy: Document processing is prone to human errors, which can incur huge costs. IDP systems are built to follow a uniform set of algorithms, which makes the chances of an error occurring very low. Capturing critical information accurately rests upon these automated systems, which provide the best precision possible.
- Scalability: With scaling business comes scaling of document volume. IDP solutions are inherently scalable; they can take on increased workloads without requiring a corresponding increase in human effort. The scalability of such solutions ensures that operations are efficient regardless of the changes in demand.
- Enhanced Compliance: In sectors with strict regulatory standards like finance and healthcare, compliance is the top priority. With IDP, organizations can keep with the standards set by the law, reduce costs, and improve compliance. IDP automates the documentation process and produces thorough audit-ready reports.
- Improved Customer Experience: In sectors such as fintech and healthcare, the efficiency and accuracy of document processing directly correlate with customer experience. With IDP, businesses can respond to inquiries faster and resolve issues quicker, leading to better customer experience.
Industry Applications
Intelligent document processing is versatile and touch all types of industries:
- Banking: Automating loan applications and KYC processes.
- Healthcare: Managing patient records and insurance claims.
- Logistics: Order processing and delivery doc automation.
- Government: Accelerating the processing of permits and social security payments.
The uptake of IDP technology is steadily growing as organizations want to realize the full potential of their unstructured data. The data from analysts foresee a surge in the market for IDPs, with digital transformation programs continuing across industries.
Overall, intelligent document processing is essential for companies seeking greater operational efficiency, lower costs, and improved accuracy in their document processes. IDP benefits both process efficiency and strategic decision-making by structuring unstructured data.
