Intelligent document processing (IDP)
Intelligent Document Processing (IDP) is an advanced technology that automates the extraction, classification, and processing of data from structured, semi-structured, and unstructured documents. By leveraging artificial intelligence (AI), machine learning (ML), optical character recognition (OCR), and natural language processing (NLP), IDP helps businesses cut down on manual processes and better streamline key workflows.
IDP is widely used in industries such as finance, healthcare, and insurance to handle invoices, contracts, loan applications, and compliance documents efficiently. Unlike traditional OCR, which only extracts text, IDP understands document context, making it a more powerful solution for businesses seeking to automate document-driven processes.
Smart document recognition
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IDP
Examples
Imagine you work at a financial institution handling thousands of mortgage applications monthly. Traditionally, loan officers manually review documents, extracting key details like applicant names, income, and credit scores, which is a time-consuming and error-prone process.
Namely, the IDP tool takes the mortgage requests, which are sent via email, scanned or manually uploaded, and uses OCR and NLP to automatically extract and structure key data. That data is then automatically pushed to the relevant loan origination system where it can go further down the decisioning pipeline. The IDP tool also keeps an audit trail of the entire process, ensuring compliance with relevant regulations.
FAQ
What’s the difference between Intelligent Document Processing (IDP) and OCR?
Typically, OCR tools will only extract data from scanned documents. IDP tools on the other hand are more advanced and can understand context, utilise AI and ML, classify the data, and can be integrated with the rest of the data processing workflow.
What are the benefits of using Intelligent Document Processing?
IDP reduces the need for manual data entry, improves accuracy, ensures compliance, and integrates with existing enterprise systems. This helps businesses save time, lower costs, and minimise human errors when handling large volumes of documents.
Which industries benefit the most from Intelligent Document Processing?
Industries such as banking, insurance, healthcare, legal, and government agencies benefit greatly from IDP. This is because IDP helps automate document-heavy processes such as claims processing, invoice management, regulatory compliance, and customer onboarding, improving efficiency and reducing operational risks.
