What Is Intelligent Document Processing?

Intelligent Document Processing (IDP) is an advanced document automation technology that combines Optical Character Recognition (OCR), machine learning, and artificial intelligence to extract, classify, and understand information from documents. Unlike traditional OCR systems that only convert images into text, IDP understands document structure, context, and data relationships. It can process unstructured and semi-structured documents such as invoices, contracts, forms, bank statements, and emails, transforming them into accurate, structured data that systems can easily use. IDP continuously improves through learning, making it highly adaptable to new document formats, languages, and layouts.

Why Use IDP for Document Automation?

IDP significantly reduces manual data entry by automatically identifying and extracting critical fields such as names, dates, amounts, addresses, and line items. It can classify documents, validate extracted data against business rules, and route information to downstream systems like ERP, CRM, or accounting platforms. This automation not only increases processing speed but also ensures consistency, compliance, and scalability across large document volumes.

Organizations using IDP experience faster turnaround times, lower operational costs, and improved data accuracy. By minimizing human intervention, IDP reduces errors, enhances auditability, and allows teams to focus on higher-value tasks. From finance and healthcare to legal and logistics, IDP enables smarter workflows, better decision-making, and seamless digital transformation across the enterprise.