How AI Document Processing Eliminates Manual Data Entry

Now think about what happens next.

In many offices, someone has to open each document, find the important information, and manually type it into another system.  It's a familiar routine, but it's also time-consuming, repetitive, and an opportunity for mistakes.

What if your business could eliminate much of that manual data entry and let technology handle the repetitive work? That's where AI document processing comes in.

What Is AI Document Processing?

AI document processing uses artificial intelligence to read documents, identify important information, and convert that information into data your business can use. Instead of an employee manually typing an invoice number, customer name, date, or dollar amount into a computer system, AI can identify and extract those details. This technology is commonly called Intelligent Document Processing (IDP).

According to IBM's explanation of intelligent document processing, IDP uses artificial intelligence and machine learning to classify documents, extract information, and prepare data for other applications.  In simple terms, AI helps your computer do more than store a scanned document. It helps the computer recognize and use the information inside it.

How Does AI Document Processing Work?

You don't need to be a technology expert to understand how it works.  Let's use a common office task: processing an invoice.

Step 1: A document arrives

Your business receives an invoice by email, scans a paper copy, or uploads a PDF.

Step 2: AI reads the document

The software identifies information such as:

• Vendor name
• Invoice number
• Invoice date
• Payment due date
• Line items and prices
• Total amount due

Step 3: The information is organized

The extracted details are placed into structured data fields, making the information easier to use.

Step 4: The information is checked

The system can apply validation rules and flag missing or uncertain information for employee review.

Step 5: The information moves to the next step

With compatible integrations, the extracted data can be transferred into accounting software, document management platforms, or other business applications.

Instead of typing every detail, an employee can focus on reviewing exceptions and approving the next step. Microsoft's Azure Document Intelligence technology demonstrates how AI can extract information from invoices, purchase orders, and other documents, including scanned PDFs and photographs.

See AI Document Processing in Action

Sometimes it's easier to see the technology at work than to read about it.  The following demonstration illustrates how intelligent document processing can identify information on an invoice and prepare it for use in a business workflow.

Watch the AI invoice processing demonstration (This is a third-party educational example of AI document extraction. Available features and integrations vary by software provider.)

 

What's the Difference Between Scanning and AI Document Processing?

This is an important distinction because scanning a document doesn't necessarily eliminate the work that follows.  

Traditional scanning creates a digital copy of a document. For example, when you scan an invoice, you might end up with a PDF saved on your computer.  That's convenient for storing documents, but someone may still need to open the PDF and manually enter its information into another system.

Optical Character Recognition (OCR) takes scanning a step further by recognizing text so that it becomes searchable or editable. 

AI document processing goes further by identifying what the information means.  For example, AI can recognize that one number represents an invoice total while another represents the invoice number. Microsoft explains that intelligent document processing can extract, categorize, and organize information from paper documents, PDFs, and other file formats.

Learn more about Intelligent Document Processing from Microsoft.

The difference is that AI can help transform a scanned document into useful information that supports everyday business operations.

Related Reading: What Happens to Your Documents After You Scan Them?

5 Ways AI Document Processing Benefits Your Business

1. Spend Less Time on Manual Data Entry:  Consider an employee who processes dozens of invoices each week.  Without automation, that employee may spend hours opening files, locating information, entering numbers, and checking for mistakes.  AI can handle much of the initial information extraction.  This allows employees to spend less time typing and more time reviewing transactions, resolving issues, and helping customers.

2. Reduce Data Entry Errors:  Even experienced employees occasionally make mistakes. A mistyped invoice number, incorrect dollar amount, or missing customer detail can create problems later. AI document processing reduces repetitive typing and can apply validation rules to identify possible errors.

However, AI isn't perfect. Poor-quality scans, unusual document layouts, and unclear handwriting can still produce incorrect results. For that reason, businesses should include human review when information is uncertain or requires an important decision.

3. Process Documents Faster:  When documents are handled manually, paperwork can pile up during busy periods. AI can help process routine documents without requiring an employee to retype information from each one. This can reduce delays involving invoices, applications, purchase orders, and other administrative paperwork.

4. Make Documents Easier to Find:  Have you ever wasted time searching for an invoice, contract, or customer record. AI-assisted document management can help organize information according to document type, customer name, date, or other relevant details. Instead of searching through folders filled with vaguely named PDFs, employees can find the information they need more efficiently.

5. Connect Documents to Other Business Processes:  One of the biggest advantages of AI document processing is what happens after the information is extracted.

For example:

• An invoice can be routed for approval.
• A customer form can supply information to a CRM system.
• A purchase order can be matched against business records.
• An employee application can be sent to the appropriate department.
• A completed document can be stored in a designated cloud folder.

With compatible systems and properly configured workflows, information can move between applications with fewer manual steps.

From Data Entry to Workflow Automation: What Happens Next?

Extracting information is only part of the process. Imagine that your accounting department receives an invoice. AI identifies the vendor, invoice number, date, and total amount. But the invoice still needs someone to review and approve it.

Without an organized workflow, an employee might email the invoice to a manager, wait for a response, send a reminder, and then forward the approved document to accounting.

That's another opportunity for automation.

Solutions such as Toshiba Elevate Sky Workflow and its UserConnect add-on help connect document processing with employee tasks, approvals, and handoffs. Elevate Sky Workflow focuses on capturing documents, extracting important information, and routing it to connected systems. UserConnect extends that process by helping manage the people involved, including assigning tasks, requesting approvals, and tracking progress.

For example, an invoice could follow a process like this:

Receive invoice → Extract data with AI → Route for approval → Review and approve → Send to accounting → Store the document

Instead of relying on a long chain of emails and manual follow-ups, the process can move through an organized workflow.