Did you know that according to recent studies, over 90% of corporate information still exists in the form of paper documents? Handling, filing, and organizing all those documents in an effective manner can pose a great challenge for many companies. This work has already been streamlined thanks to Optical Character Recognition (OCR). This technology has paved the way for digitization, but it still falls short in addressing the broader complexities of document processing. And this is what we want to discuss today. We want to tell you more about AI Document Processing: What is the Use of AI in Document Processing? This is important as AI opens up new possibilities for organizations seeking seamless document management solutions.
What is the use of AI in document processing?
As we’ve already mentioned, it all started with OCR, which facilitated the scanning and storage of documents in digital formats. Undoubtedly, this technology saved a lot of time for thousands of companies! Over time, AI-enabled something we know today as intelligent document processing (IDP). IDP utilizes AI and Machine Learning (ML) solutions to capture, extract, and process data from documents. IDP is one of the true game-changers, making the operational efficiency of document processing simple and efficient like never before. This was possible partly thanks to the AI-related technology known as NLP – natural language processing.
How does AI-based document processing work?
Briefly put, AI-based document processing follows a structured approach encompassing four fundamental steps:
- Ingestion: First, physical documents are digitized using OCR. On the other hand, digital documents can be imported through various channels like uploads, email transfers, or secure file transfers – this process is much faster and easier.
- Classification: The IDP system uses AI, ML, and natural language processing to understand and classify documents. This involves categorizing documents based on their nature, such as medical forms, customer feedback forms, or invoices. This step determines what’s happening next with a given document.
- Extraction: In this stage, the system pulls data from the documents and transforms it into usable forms. Data may be structured, semi-structured, or unstructured, requiring specific processing approaches for each type.
- Verification: While AI and ML systems are tremendously helpful, human supervision is crucial for verification purposes. Sometimes, actions taken by automated systems need to be corrected or even removed. Over time, the system learns from human feedback, gradually improving accuracy and reducing the need for extensive verifications.
As you can see, the majority of this process happens automatically, making document processing a very effective process. But there’s more when it comes to the benefits of such a solution.
Advantages of AI document processing
Without a doubt, the integration of AI and ML has revolutionized modern document processing. There are at least five big advantages of this new AI-driven approach:
- Lowered data inaccuracy: AI document processing minimizes potential human errors associated with manual data entry (imagine updating 1,000 Excel spreadsheets!), ensuring high accuracy in document management.
- The ability to handle big data: AI-based systems efficiently manage large volumes of data, scaling along with organizational growth. This ensures timely and accurate document processing even as data volumes expand.
- Streamlined document categorization: Intelligent document processing excels in categorizing documents into datasets based on content, automating the routing of specific documents to relevant departments. This reduces human errors and streamlines workflows.
- Available automation: The same tools that streamline document processing can help you with automation, e.g., through updating specific documents with needed information. For example, this way, you can streamline contract creation or customer query responses.
- Increased productivity: Lastly, traditional document processing methods are time-consuming. AI-based systems enable quick access to stored documents, freeing up employees’ time for more critical tasks. This, naturally, contributes to increased productivity of your company.
The future of AI document management
AI document processing is already a huge support in the way companies around the world handle their documents. This doesn’t mean, though, that there is nothing going on in this field. On the contrary, AI-powered document processing will soon become even easier and more effective. We’d like to turn your attention to two vital trends that are slowly emerging in this field:
INCREASED USE OF RPA AND BI TECHNOLOGIES
Robotic Process Automation (RPA) and Business Intelligence (BI) technologies automate tasks and provide valuable insights. We estimate they can start a new revolution in the way we process documents, as they both offer enhanced efficiency and reduced processing times, and they can contribute to overall better document management practices.
The truth is the majority of document processing happens on desktop devices, but this technology will gradually become more mobile-friendly, thus ensuring that AI document management systems are accessible on mobile platforms. This trend improves user experience and can increase productivity even further (think companies with field workers or external specialists working across the globe) and user satisfaction.
Nowadays, as AI-based document processing technologies are evolving and becoming more accessible, traditional document management practices are undergoing a complete overhaul. Organizations that embrace these advancements will likely experience enhanced efficiency, improved productivity, and a competitive edge in the evolving business landscape. If you’d like to find out more about how AI can improve your document processing practices, read this article: AI Document Processing: What is the Use of AI in Document Processing?