In this era of rapid digitalization, companies deal with large volumes of data on a daily basis. Traditionally, managing documents has been time-consuming and prone to mistakes resulting in delays, expenses and decreased efficiency. Fortunately, the rise of Artificial Intelligence (AI) and Machine Learning (ML) has brought about a solution called Intelligent Document Processing (IDP). IDP has transformed how organizations extract, understand and leverage information from documents. It simplifies workflows and empowers businesses to operate smarter and faster.
What Is Intelligent Document Processing?
Intelligent Document Processing involves utilizing artificial intelligence and machine learning technologies to automate the extraction and handling of information from unstructured documents. These unstructured documents can encompass a range of file formats such, as images, PDFs, emails and handwritten forms that do not adhere to a predetermined data model or standardized layout.
IDP goes beyond the Optical Character Recognition (OCR) by using sophisticated machine learning algorithms to understand the content and meaning of documents. It combines AI methods, like natural language processing, computer vision and pattern recognition to accurately capture, categorize and extract relevant information from documents.
Benefits of Intelligent Document Processing
Intelligent Document Processing provides advantages that can enhance business operations and boost efficiency. By automating tasks like data entry, IDP minimizes the possibility of mistakes and allows employees to dedicate their efforts to more intricate responsibilities. This not only saves time but also enhances precision resulting in cost savings for the company in the long run.
Furthermore, IDP offers data management and analysis capabilities in addition to its efficiency and accuracy. By extracting and examining data from sources, companies can acquire valuable insights into their operations.
What Is Causing the Rapid Growth of IDP?
According to a report published by Research Nester, there has been a significant increase in the growth of IDP. The report predicts that the global market size for document processing is expected to reach USD 122 Billion by the end of 2035 with a compound annual growth rate (CAGR) of 40.50% between 2023 and 2035. Additionally, in 2022 the market size, for document processing was USD 2 Billion.
IDP has become increasingly necessary due to factors highlighting the difficulties and possibilities that organizations encounter when dealing with the ever-growing amount of unstructured data. Notably regions like North America, Europe, Asia Pacific and others have witnessed a surge in the need for IDP solutions in various industries such as finance, healthcare, insurance, retail, manufacturing and more. Let’s take a look at the primary reasons driving the growing demand, for IDP:
- Data Explosion: Nowadays with the advancements in technology businesses are dealing with quantities of data on a daily basis. Data experts witness an increase of around 65% in data volume every month within their organizations. This includes information from diverse sources like scanned documents, PDFs emails and images. The conventional manual methods, for data entry and processing are insufficient to manage this rapid growth of data.
- Increased Productivity and Cost Savings: IDP streamlines tasks liberating employees from repetitive work. This boosts productivity and enables the workforce to dedicate their efforts to more strategic and value-driven endeavors. Additionally, by minimizing labor, organizations can achieve substantial cost savings.
- Real-Time Data Access: IDP allows for the extraction and processing of data in time or near real time. This enables decision making and quicker response times for customers and partners, and improves overall operational efficiency.
- Digital Transformation Initiatives: In today’s age, businesses are constantly evolving and looking for ways to streamline their operations. One key aspect of this is the adoption of technology-driven solutions to automate and enhance document processing and workflow management. This is where IDP comes in offering a fit for organizations seeking to optimize their processes through digital transformation initiatives.
- Enhanced Customer Experience: Improved processing speeds and shorter turnaround times result in enhanced customer experiences. Companies can promptly address customer inquiries, request approvals and ensure a smooth and seamless customer journey.
Use Cases of Intelligent Document Processing
Invoice Processing: IDP systems can efficiently extract information from invoices, including invoice numbers, dates, line items and total amounts. This helps to streamline the accounts process.
Contract Management: IDP can be helpful in extracting clauses, obligations and deadlines from contracts, making contract review and management easier.
Insurance Claims Processing: IDP has the ability to speed up the insurance claims processing by extracting information from both claim forms and supporting documents.
Loan Application Processing: Automating the extraction and validation of data from loan application forms through IDP can significantly enhance the efficiency of the loan approval process.
Patient Record Management: In the healthcare field, IDP technology is utilized to retrieve important data from medical records enabling medical professionals to swiftly access patient information with ease.
Challenges of Intelligent Document Processing
One of the obstacles in implementing IDP is the need to prioritize data security. Given that information is involved, it becomes imperative to establish robust security measures to prevent any unauthorized access or breaches. This task can be particularly demanding when engaging with third-party vendors or relying on cloud-based solutions. Nonetheless, by incorporating encryption access controls and conducting routine security audits, organizations can effectively mitigate the risks associated with data loss or theft.
Integrating IDP into existing workflows and systems also poses its set of challenges. It often demands modifications to processes and infrastructure which can be both expensive and time-consuming. However, with careful planning and prioritization of integration efforts, organizations can achieve a transition while capitalizing on the advantages offered by this technology.
Intelligent Document Processing is a solution that organizations can utilize to improve the accuracy of data extraction streamline workflows and boost productivity. As technology continues to advance, businesses that adopt IDP will undoubtedly gain an advantage making it an indispensable tool in modern digital landscape.
Shalini Nagar, a content associate, brings a wealth of writing experience to the table through her work. She has gained proficiency in areas such as crafting website content, writing press releases and articles, creating engaging blog posts, editing work conducting research and designing infographics. These diverse skills have made her a rounded writer and a valuable member of the team at Research Nester Pvt. Ltd.