About AI
Intelligent document processing (IDP)
Organizations depend on documents and communications for almost every process, whether it’s hiring, managing finances, or interacting with customers. As enterprises grow, juggling all that digital paperwork can become time-consuming and costly. And failure to deal with the problem effectively can cause delays that slow everyone down.
- What is intelligent document processing?
- What are the benefits of intelligent document processing?
- How does intelligent document processing work?
- What are the most important capabilities to look for in IDP tools and platforms?
- What are the best intelligent document processing use cases?
- Harness the power of intelligent document processing with UiPath
Luckily, there is an answer: intelligent document processing (IDP). IDP brings together automation and artificial intelligence (AI), transforming how organizations manage documents and communications—and unburdening the many employees who routinely need to read, sort, and complete follow-up actions based on documents.
What is intelligent document processing?
Intelligent document processing is an advanced technology that automates the extraction, processing, and analysis of data from various documents. It uses AI technologies, such as generative AI (GenAI), natural language processing (NLP), computer vision, machine learning (ML), and optical character recognition (OCR) to process and sort structured, semi-structured, and unstructured data. These capabilities allow IDP to read documents and process the information automatically.
For example, let’s say you regularly have to extract customer information from emails and input it into a client relationship management (CRM) system. Using a combination of AI and automation, IDP can read these emails for you, extract the information you need, and enter it into the right system—accurately, and in the correct format. In other words, IDP now lets you automate a wide range of processes that require document understanding.
IDP is now used extensively in industries that handle large volumes of unstructured documents and communications, such as legal, healthcare, financial services, and the public sector. However, IDP can be beneficial to nearly every department of an enterprise, regardless of industry, as almost every process involves a document to be processed or a communication to be completed. Therefore, no matter your industry or department, IDP can optimize your document management and data processing workflows.
What are the benefits of intelligent document processing?
By enabling you to automate business processes that require document understanding and processing, IDP provides both employees and businesses with a wide range of benefits. These benefits include:
Increased operational efficiency
IDP makes it easier to extract and process data. This saves time and effort when handling high volumes of documents.
Improved accuracy
IDP uses AI-powered processes and algorithms that remove the need for human input, such as manual data entry. This helps reduce human errors and improves the quality of data extraction.
Greater cost savings
improved efficiency and accuracy of document processing due to limited human intervention can help lower operational costs.
Scalability
Since IDP can process documents at a far faster rate than a human, it can easily handle increasing volumes of documents. This makes it ideal for growing businesses or other enterprises that routinely handle exceedingly large amounts of documents or are undergoing digital transformations.
Ensured compliance and security
IDP makes sure that sensitive documents are handled consistently while maintaining compliance with regulatory standards. This helps to keep data safe and secure.
Better customer experience
By automating data extraction and processing, IDP enables faster, more accurate service and reduces wait times for responses to customers.
How does intelligent document processing work?
IDP uses a range of advanced technologies to collect, read, and classify structured, semi-structured, and unstructured data so you can focus on higher-value priorities. The process for doing so is as follows:
Step 1: document ingestion
The first step involves an IDP system taking in the documents that need to be processed. This can include different types of documents from various file formats, such as PDFs, Microsoft Excel spreadsheets, Word documents, images, and even scanned papers.
Step 2: classification
AI, ML, and NLP process the data and classify it based on factors such as its content, intent, or sentiment.
Step 3: extraction
OCR and other AI technologies are used to scan the text and extract the pertinent data. AI helps IDP systems get data from structured, unstructured, and semi-structured documents. Structured documents may include filled forms, while unstructured documents might refer to emails or other documents where data is not already arranged or classified.
Step 4: human validation
Extracted data is validated for accuracy by humans.
Step 5: integration
Once data has been validated, it is exported or integrated into business systems or workflows.
What are the most important capabilities to look for in IDP tools and platforms?
Not all IDP platforms are created equal—the best ones are trustworthy, transparent, and equipped with state-of-the-art AI capabilities. Here’s what to look for when evaluating your options:
Context grounding and trust layers: look for intelligent document processing solutions that build user trust through robust context grounding mechanisms, transparency, explainability, and "trust but verify" principles.
Model customization: instead of relying on a one-size-fits-all model, prioritize tools that allow you to fine-tune pre-trained large language models (LLMs) and custom models that can be applied to different document types.
Integration with LLMs and GenAI: choose platforms that incorporate LLMs and GenAI into their tech stack. While these tools excel at handling unstructured data, they should complement a platform’s existing IDP capabilities rather than replace them.
Open to feedback: select vendors who actively incorporate user feedback into their product roadmap, ensuring that the platform evolves with your organization's unique needs and challenges.
Ease of use: platforms that come with low-code/no-code interfaces enable non-technical employees and line-of-business users to use IDP tools effectively without extensive technical training.
Upskilling opportunities: embrace IDP solutions that empower employees to take on higher-value tasks, supporting their career development while fostering a culture of innovation and adaptability.
What are the best intelligent document processing use cases?
IDP can be deployed across various workflows throughout an organization, from onboarding new employees to sorting purchase orders. Some common business use cases for IDP include:
Invoice processing
Automating the extraction and validation of invoice data—such as vendor information, amounts, and dates—reducing manual entry and speeding up payment workflows.
Healthcare records management
Processing patients’ records, medical forms, and insurance claims by extracting relevant data and ensuring accurate input into healthcare systems.
Legal document review
Automating contract analysis, extracting key clauses, and identifying legal risks, saving time on manual document review.
Insurance claims processing
Extracting and validating claim information from various document types, including forms, images, and correspondence, to speed up claims management.
Mortgage and loan application processing
Automating the processing of loan applications by extracting financial information, validating documents, and improving compliance with regulatory standards.
Harness the power of intelligent document processing with UiPath
If you routinely process and sort large amounts of documents and communications, you no longer need to worry about being buried in a mountain of digital paperwork.
UiPath intelligent document processing extracts, interprets, and processes data within documents and communications for you, so that you can focus on the aspects of your job that are really important.
UiPath IDP combines automation and AI to streamline the extraction and processing of information from various documents. It uses ML models to accurately interpret data from structured, semi-structured, and unstructured documents, enabling businesses to reduce manual effort and improve accuracy. It supports multiple document and communication types, integrates with existing workflows, and helps organizations enhance efficiency while minimizing errors. It can also be paired with robotic process automation (RPA) and document automation software to further automate document-based processes.
As a recognized leader in the IDP space, UiPath is redefining what’s possible with intelligent automation solutions. Discover how smart document processing can help make your daily work easier.
