Data is an essential component of any organization’s day-to-day activities. Intelligent document processing (IDP) is the next phase of automation that facilitates capturing, extracting, and processing data from a wide range of document formats.
It classifies, categorizes, and extracts important information using AI technologies such as natural language processing (NLP), computer vision, deep learning, and machine learning (ML), as well as validating the collected information.
IDP is being used by businesses to improve process automation, which is currently being hampered by manual data entry bottlenecks and OCR constraints.
Intelligent Document Processing (IDP) is software that helps in converting unstructured and semi-structured data into usable information. Unfortunately, 80 percent of all company data is stored in unstructured formats such as business papers, emails, photos, and PDF documents, which makes digital transformation difficult.
Hence IDP has become a thriving solution that assists users to extract data from the papers that drive the business, such as insurance claims, mortgage applications, contracts, purchase orders, invoices, and more
The perks of Intelligent Document Processing
- IDP enables less expenditure and better savings as it reduces costs by drastically lowering the cost of processing massive amounts of data.
- The ease with which it can be used is one of the prime benefits of using IDP. It allows organizations to run quicker and automate more activities.
- IDP offers Increased precision in data processing. With the usage of AI, users see a huge rise in data accuracy right away.
- Reduces the need for skilled workers to process documents manually.
- End-to-end automation of document-centric operations is possible with IDP.
- Data processing that is automated helps businesses achieve goals like increasing customer relations and sales.
- IDP reduces the risk of sensitive information being exposed to third parties by eliminating the need for humans to access, review, or handle any of the documents. Hence offering better compliance and security
- IDP transforms dark data into high-quality, structured data that is ready for analysis, thus improving the quality and usability of data
- Boosts data analysis and capabilities for strategic evaluation significantly
- IDP can connect all of the systems involved in automating complex business processes and attaining hyper-automation.
- IDP speeds up document processing, especially when dealing with large amounts of data and thus increasing the efficacy and effectiveness
The challenges involved in Intelligent Document Processing
IDP is still a work in progress. Current technologies are still unable to match human cognitive capacities. As a result, if procedures are completely replaced with an IDP platform, the results will be inconsistent.
With the implementation of IDP, there is a high likelihood of not having a defined and actionable business goal. It’s best not to undervalue or overvalue the abilities of this platform. As lack of real expectations can lead to incorrect results
The risk of security threats is high. It is critical to use access control standards for IDP to succeed while maintaining data integrity. Difficulty in integration is unavoidable while using IDP
Manually processing large amounts of data is difficult. Using an IDP platform, on the other hand, saves time and improves performance. Learning what data is available, which components are significant, and what business effects are expected when coupled with specific files is the key to successful data processing.
A dynamic organization can’t move forward in the digital age without the correct technical stimulus and today IDP is one such stimulus that drives digital transformations.