{"id":2554,"date":"2023-04-20T02:32:16","date_gmt":"2023-04-20T07:32:16","guid":{"rendered":"https:\/\/www.emagia.com\/blog\/?p=2554"},"modified":"2025-01-28T22:50:32","modified_gmt":"2025-01-29T04:50:32","slug":"intelligent-document-processing","status":"publish","type":"post","link":"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/","title":{"rendered":"Understanding the Basics of Intelligent Document Processing (IDP) Software","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"<p>Intelligent Document Processing is a cutting-edge technology that uses AI and machine learning to automate business processes that involve documents. IDP allows corporations to extract, categorize, and validate data from documents like contracts, invoices, and forms. Over time, corporations have begun to manage their document workflows more differently and efficiently than before because of IDP.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-flat ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/#what-is-intelligent-document-processing\" >What is Intelligent Document Processing?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/#intelligent-document-processing-idp-workflow\" >Intelligent Document Processing (IDP) Workflow<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/#there-are-5-key-steps-to-an-idp-workflow\" >There are 5 Key Steps to an IDP Workflow<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/#intelligent-document-processing-use-cases-capability-by-industry\" >Intelligent Document Processing Use Cases (Capability by Industry)<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/#what-is-the-role-of-the-document-processor-in-idp\" >What is the Role of the Document Processor in IDP?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/#evaluating-intelligent-document-processing-is-it-right-for-you\" >Evaluating Intelligent Document Processing: Is it right for you?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/#key-benefits-of-intelligent-document-processing\" >Key Benefits of Intelligent Document Processing<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"what-is-intelligent-document-processing\"><\/span>What is Intelligent Document Processing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Intelligent document processing, also known as IDP is a simple solution for document processing. It extracts any necessary information from financial documents and processes insights for decision-making. IDP can scan structured and unstructured documents with the help of machine learning and AI. With this, IDP allows corporations to accomplish better financial management and excellence.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"intelligent-document-processing-idp-workflow\"><\/span>Intelligent Document Processing (IDP) Workflow<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Scanning devices collect data from documents, transform that data into an electronic format, then later supply those electronic copies as input to intelligent document processing solutions. These solutions will use computer vision to identify various layouts from photos, PDF files, and other digital and physical files.<\/p>\n<p>NLP, natural language processing is the technology that is combined with IDP workflows. It also combines them using OCR and reads the document data. It then incorporates it into management systems by using entity recognition, sentiment analysis, and feature-based tagging.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"there-are-5-key-steps-to-an-idp-workflow\"><\/span>There are 5 Key Steps to an IDP Workflow<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3>1. Document Pre-Processing<\/h3>\n<p>Optical Character Recognition (OCR) is involved in this step. OCR is put into use whenever there is a need for the extraction of data. The accuracy depends on how it can identify a word or character in the background. For this process to be successful, binarization, deskewing, and noise removal occur.<\/p>\n<h3>2. Document Classification<\/h3>\n<ul>\n<li><strong>Identify the format:<\/strong> See if the file is a PDF, JPG, PNG, etc.<\/li>\n<li><strong>Identify the structure:<\/strong> The OCR software has to distinguish between structured, semi-structured, and unstructured documents. Semi-structured documents have somewhat of a structure. They have similar content in various places within the document. Structure documents have a set layout and template already. Unstructured documents barely have any structure. However, corporations still need to get the necessary data from these documents.<\/li>\n<li><strong>Identify document type:<\/strong> We need to see the document type, if it is an invoice, shipping label, bank statement, etc.<\/li>\n<\/ul>\n<p class=\"border p-3 rounded border-primary mt-4 mb-4\"><a class=\"text-decoration-none\" href=\"\/blog\/best-document-processing-approach\/\">OCR vs RPA vs Gia Docs AI: Which is best document processing approach for supply chain logistics? <strong class=\"text-decoration-none font-weight-bold pl-2\">Read Blog<\/strong><\/a><\/p>\n<h3>3. Data Extraction<\/h3>\n<p>There are two ways to go about data extraction: key-value pair extraction or table extraction.<\/p>\n<ol>\n<li>Typically, OCR is the first step for data extraction.<\/li>\n<li><strong>Rule-based extraction:<\/strong> This is for semi-structured and structured documents. They can find key-value pairs in a document.<\/li>\n<li><strong>Learning-based approach:<\/strong> Deep learning and ML-based OCR-hybrid data extraction approaches need supervised and unsupervised learning. The accuracy rate gauges how effective these models are. The model\u2019s accuracy improves as more documents are processed as more feedback is given.<\/li>\n<\/ol>\n<h3>4. Data Validation<\/h3>\n<p>This is a crucial step to identify any errors in the data that will extract later on. The document uses some validation rules to find mistakes. For example, in an invoice, the \u201ctotal amount payable\u201d needs to be equal to the sum of the \u201csubtotal\u201d as well as the \u201ctax payable.\u201d If these two do not match, the invoice will eventually get flagged and inspected.<\/p>\n<h3>5. Human Review<\/h3>\n<p>Data extraction is not always correct. For this case, any flagged documents will be reviewed manually. This will help better the data extraction model for future use.<br \/>\n<img decoding=\"async\" src=\"\/blog\/wp-content\/uploads\/2023\/05\/5-key-steps-to-an-intelligent-document-processing-workflow.jpg\" alt=\"5 Key Steps to an intelligent document processing \/ IDP Workflow: 1. Document Pre-Processing 2. Document Classification 3. Data Extraction 4. Data Validation 5. Human Review\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"intelligent-document-processing-use-cases-capability-by-industry\"><\/span>Intelligent Document Processing Use Cases (Capability by Industry)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>IDP is used in Many Types of Industries:<\/p>\n<p class=\"border text-center p-3 rounded border-primary mt-4 mb-4\"><a class=\"text-decoration-none\" href=\"\/blog\/intelligent-document-processing-for-logistics-and-supply-chain-companies\/\">Gia Docs \u2013 Intelligent Document Processing for Logistics and Supply Chain Companies. <strong class=\"text-decoration-none font-weight-bold pl-2\">Read Blog<\/strong><\/a><\/p>\n<h4>Lending<\/h4>\n<p>Lenders use IDP models to assess the <a href=\"\/products\/credit-risk-management\/\">credit risk <\/a>of their borrowers. IDP can reduce the amount of manual data entry necessary to process loan applications, guarantee quicker turnaround times, and will provide lenders with time to analyze.<\/p>\n<h4>Insurance<\/h4>\n<p>The insurance industry uses IDP to handle vast amounts of customer data and to perform credit profile analysis.<\/p>\n<h4>Logistics<\/h4>\n<p>A lot of exchange in data occurs in the logistics industry. All this information has to be authenticated, verified and double-checked. For contractors at the supply chain level, IDP solutions are handy for businesses to send labels, agreements, and invoices to them.<\/p>\n<h4>Commercial Real Estate<\/h4>\n<p>IDP is prominent in real estate for ren roll processing, lease agreements, and T12 statements. It is also common while looking at market rates for finding a profitable investment.<\/p>\n<h4>Accounts Payable<\/h4>\n<p>An automated accounts payable solution can handle invoices with various layouts and structures and can instantly conform them against purchase orders.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-the-role-of-the-document-processor-in-idp\"><\/span>What is the Role of the Document Processor in IDP?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The documents that a document processor receives have to be reviewed for mistakes and make sure everything is accurate. The document processor typically requires attention to detail. For example, to decide whether to approve a loan or not, a mortgage loan underwriter analyzes and evaluates the application. The document processor\u2019s responsibility is to see if the necessary paperwork and any information related to mortgage applications are accurate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"evaluating-intelligent-document-processing-is-it-right-for-you\"><\/span>Evaluating Intelligent Document Processing: Is it right for you?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>IDP is a solution that uses computer vision, OCR, and machine learning. These tools improve comprehension of a document that contains unstructured data, in the data integration process.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"key-benefits-of-intelligent-document-processing\"><\/span>Key Benefits of Intelligent Document Processing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Less manual labor: <\/strong>Having AI for document processing, allows things to happen much faster and more efficiently. This way, people can focus on higher-priority tasks for their business.<\/li>\n<li><strong>Inexpensive:<\/strong> IDP is a very low-cost tool and alternative which allows services to be accessible to customers more quickly. If international companies use AI for translational purposes, customers can read the document and report their needs to their stakeholders.<\/li>\n<li><strong>Better customer experience:<\/strong> With IDP being a very efficient and quick process, the ability to respond to customers will automatically be quick as well.<\/li>\n<li><strong>No human error:<\/strong> Mistakes happen and eventually add up. Financial departments claimed that $878,000 is spent annually just for calculation errors. To avoid this, IDP decreases the number of errors by a vast amount benefiting the company and its customers.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"\/blog\/wp-content\/uploads\/2023\/05\/key-benefits-of-intelligent-document-processing.jpg\" alt=\"Key Benefits of Intelligent Document Processing\" \/><\/p>\n<h3><strong>Why Should Businesses Use AI-powered IDP?<\/strong><\/h3>\n<p>There is a lot of pressure in the intelligent document processing market for corporations to improve their customer satisfaction and performance. Due to this, these companies will want to make their document-driven operations move at a quicker rate without sacrificing their quality.<\/p>\n<p>Thanks to IDP, companies can correctly extract, classify, and validate their data from a range of documents. This technology has become revolutionary and is effective to many organizations globally.<\/p>\n<p><a href=\"\/products\/gia-docs-intelligent-document-processing\/#request-demo\"><img decoding=\"async\" src=\"\/blog\/wp-content\/themes\/mainblog\/assets\/images\/intelligent-document-processing-for-supply-chain-and-logistics-made-easy.jpg\" alt=\"Intelligent Document Processing for Supply Chain and Logistics Made Easy\" width=\"898\" height=\"200\" \/><\/a><\/p>\n<h3><strong>IDP Related FAQs<\/strong><\/h3>\n<div class=\"faqs-div\">\n<h5>How Accurate is Intelligent Document Processing?<\/h5>\n<p>IDP and data extraction has a 99.9% accuracy rate.<\/p>\n<h5>What is OCR vs IDP?<\/h5>\n<p>OCR can read a document and transform it into a digital form. IDP uses AI to read a document and extract necessary information from it.<\/p>\n<h5>Why use IDP?<\/h5>\n<p>IDP saves a lot of time and very simply deducts a very tedious process.<\/p>\n<h5>Why is Document Processing Important?<\/h5>\n<p>IDP contributes to the overall success of a company by optimizing and enhancing key processes.<\/p>\n<\/div>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>Intelligent Document Processing is a cutting-edge technology that uses AI and machine learning to automate business processes that involve documents. IDP allows corporations to extract, categorize, and validate data from documents like contracts, invoices, and forms. Over time, corporations have begun to manage their document workflows more differently and efficiently than before because of IDP. &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/www.emagia.com\/blog\/intelligent-document-processing\/\"> <span class=\"screen-reader-text\">Understanding the Basics of Intelligent Document Processing (IDP) Software<\/span> Read More &raquo;<\/a><\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":2555,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gia-docs-intelligent-document-processing"],"acf":[],"gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts\/2554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/comments?post=2554"}],"version-history":[{"count":0,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts\/2554\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/media\/2555"}],"wp:attachment":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/media?parent=2554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/categories?post=2554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/tags?post=2554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}