Teaching Software to Read So Humans Do Not Have

 In the digital age, we interact with more documents than ever before. Whether it’s contracts, invoices, emails, or reports, the sheer volume of paperwork can overwhelm anyone. The problem isn’t just in the sheer amount of documents, it’s in how we handle them. Traditional methods of reading and processing documents are time-consuming, error-prone, and often inefficient. But what if software could learn to read documents, extract key information, and do the work for us? Enter Intelligent Document Processing (IDP) the game-changing technology that allows software to do exactly that.

With Intelligent Document Processing, software becomes “smarter,” learning how to interpret and act on information in documents without human intervention. This shifts the burden of document management away from workers, reducing time spent on manual tasks and opening up new opportunities for productivity and accuracy.

Let’s explore how Intelligent Document Processing is teaching machines to read, so humans don’t have to.

The Challenge of Manual Document Processing

For years, document processing has relied on humans to manually read and interpret information. Whether it's entering data from a form into a database, sorting through paperwork, or approving contracts, it all takes time, focus, and effort. According to AIIM, 40% of employees say that manual document management reduces productivity and creates unnecessary stress.

The risks of this manual process are significant:

• Time Wasted on Repetitive Tasks: Manually extracting data from invoices, contracts, or receipts is not only boring but also tedious. The more repetitive the task, the more prone humans are to making mistakes.
  
  

• Inconsistent Results: People interpret documents differently. One employee may interpret a set of instructions differently than another, leading to inconsistencies that slow down the workflow and require rework.
  
  

• Costly Errors: Errors made during manual document processing can lead to costly mistakes, such as incorrect billing or delays in project timelines. These errors are often the result of data entry mistakes, missing information, or misinterpretations of the documents.
  

The answer? Let’s automate the process, so humans can focus on higher-level tasks.

How Intelligent Document Processing Works

At its core, Intelligent Document Processing allows machines to “understand” documents, extract valuable information, and automate workflows—all without human intervention. Here’s how it works:

1. Document Ingestion and Classification

The first step in Intelligent Document Processing is getting the document into the system. Whether it's a PDF, email, image, or scanned paper document, the software can automatically ingest and classify these files based on their content.

For example, a contract and an invoice may look similar but serve different purposes. IDP tools are trained to recognize the type of document (invoice, purchase order, contract, etc.), and categorize it accordingly. This classification ensures that each document is processed in the correct way.

2. Optical Character Recognition (OCR)

Once the document is ingested, the software uses Optical Character Recognition (OCR) to read the text. But OCR technology in IDP is more advanced than the basic OCR tools most people are familiar with. It’s not just extracting text; it’s recognizing key elements within the document, such as names, dates, amounts, and signatures.

This allows the software to “see” the document as a human would, understanding the structure and extracting the most important data with accuracy.

3. Data Extraction and Validation

After the document is scanned and classified, the software automatically extracts the relevant data. This could include invoice amounts, contract terms, customer details, or any other important information that’s needed. What’s remarkable about Intelligent Document Processing is that it doesn’t just pull data out at random; it is programmed to identify and extract the most relevant and actionable data points.

For instance, a system processing invoices might automatically extract the total amount due, the payment due date, and the vendor name. The software can even cross-check extracted data against existing databases, ensuring that all the data is accurate and consistent.

4. Workflow Automation and Action

Once the data is extracted, the magic happens: Intelligent Document Processing can trigger actions or send the information to other systems for further processing. For example, once an invoice is read and validated, the software might automatically trigger a payment request or send the invoice to the appropriate department for approval.

By removing the need for human involvement in these tasks, IDP speeds up workflows, reduces errors, and increases productivity. What used to take hours of human labor now happens almost instantly and with more accuracy.

The Benefits of Intelligent Document Processing

Intelligent Document Processing offers a multitude of benefits that extend far beyond simply automating document handling. Let’s explore the key advantages:

1. Increased Efficiency and Speed

One of the most significant advantages of Intelligent Document Processing is the speed at which documents are processed. Automated systems can work 24/7, processing documents in a fraction of the time it would take a human. Instead of waiting hours or days for a document to be reviewed, processed, and acted upon, IDP can complete these tasks within seconds or minutes, accelerating decision-making and improving overall efficiency.

2. Improved Accuracy and Reduced Errors

Manual document processing is prone to human error, whether it’s mistyped data, overlooked fields, or incorrect interpretations of data. Intelligent Document Processing reduces these errors by applying consistent rules and leveraging machine learning to continuously improve. With IDP, accuracy rates reach up to 98% far surpassing the capabilities of human workers.

3. Cost Savings

By automating document processing, companies can significantly reduce labor costs associated with manual data entry, sorting, and reviewing. According to McKinsey, organizations that implement IDP see an average cost reduction of 30-50% in document processing and data entry tasks. The savings come not only from reduced labor costs but also from improved accuracy, faster processing times, and fewer errors.

4. Better Customer Experience

When you automate document workflows, you’re able to respond faster and more accurately to customer requests. Whether it’s processing an order, approving a loan, or handling a service request, the faster and more accurate the document handling, the better the customer experience. Customers no longer have to wait for days while someone manually processes their request they get the answers they need quickly, leading to improved satisfaction.

Conclusion: 

Intelligent Document Processing is teaching machines to “read” and understand documents, which means humans no longer have to waste time sifting through endless paperwork. By automating document workflows, businesses can improve efficiency, reduce errors, save money, and enhance the customer experience.

As Intelligent Document Processing continues to evolve, the possibilities for automating and optimizing document-based workflows are endless. By adopting this technology, businesses can stop relying on outdated manual processes and embrace a smarter, faster, and more efficient way of working.