Implementing AI Document Processing: The Ultimate Guide

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AI-powered document processing is one of the smartest ways to introduce intelligent solutions into your business operations. By leveraging AI for document processing, organizations can automate and streamline manual tasks (e.g., data entry, document capture), extract valuable insights from unstructured data, and reduce human error, thus achieving higher accuracy and efficiency in document management.

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Manually processing documents (e.g., invoices, sales orders, purchase orders, etc.) can be a tedious and time-consuming process, especially when dealing with large volumes of data. It involves a lot of repetitive tasks, like data entry, document classification, data extraction, and validation. With AI-based solutions, businesses can automate document processing tasks, freeing up their employees' valuable time to focus on more strategic and creative work that requires human intelligence, like decision-making, problem-solving, and customer interactions.

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Alright. AI document processing definitely sounds like a game-changer for businesses. But what exactly is it? How does it work? And how can it benefit businesses in managing their documents more efficiently? If these are some questions that come to your mind, you have come to the right place. 

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What is AI Document Processing?

AI document processing is the use of artificial intelligence (AI) and other advanced technologies like machine learning (ML), natural language processing (NLP), optical character recognition (OCR), and workflow automation to extract, analyze, and organize data from different types of documents such as sales orders, invoices, purchase orders, contracts, etc. These documents can be either in physical form (e.g., scanned images or paper documents) or digital form (e.g., emails, PDFs, or Word files).

AI-based document processing tools can automatically identify and classify document types, extract relevant data fields (e.g., customer name, date, product description, unit price), validate the data against predefined rules, and integrate it with existing systems or databases. These AI tools reduce the need for manual efforts (e.g., data entry, document sorting, data validation), thus minimizing the chances of human error and improving the overall efficiency of document management processes.

While AI document processing is a general term encompassing different technologies, it's worth mentioning turian as one of the best AI-driven document processing solutions. turian goes beyond just automating simple document processing tasks; it offers complete end-to-end document processing solutions that can handle complex documents with multiple data points and varying formats. turian leverages cutting-edge AI technologies, like large language models (LLMs), to understand the context and meaning of documents, extract key insights and patterns from the data, and provide valuable business insights for more informed decision-making.

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The Evolution of AI Document Processing

While, for a long time, OCR was the go-to solution for document processing, it had its limitations. OCR-based tools are effective for extracting data from standard documents with fixed formats or digitizing paper documents, but they're not efficient in handling unstructured data, like handwritten text, emails, or documents with varying layouts, formats, or languages. For instance, if you have an invoice with a different layout or a new field, OCR tools will need retraining to extract the data correctly, as they can't adapt to changes or understand the context of the data. OCR solutions follow a set of rules, and any deviation from that can lead to errors.

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In order to overcome the limitations of OCR, intelligent document processing (IDP) came into the picture. Intelligent document processing software uses a combination of technologies like OCR, ML, RPA, and computer vision to automate the document processing workflow. IDP solutions can capture and classify documents based on their type, extract relevant data fields using OCR and ML, and integrate the data with existing systems using RPA. IDP tools can handle both structured and unstructured data, making it more flexible than OCR-based solutions. However, without AI, IDP is like a robot without a brain.

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While IDP solutions can extract and process data from various types of documents (e.g., PDFs, emails, images), they can't understand the context and meaning of the data or take action based on that understanding. For instance, if a purchase order mentions a customer as "ABC Inc." and the same customer appears as "ABC Corporation" in another document, IDP tools won't be able to recognize that it's the same entity. It simply follows instructions and extracts the data as it is without any understanding or adaptation. This means that IDP tools still require manual intervention to validate data and handle exceptions, leading to slower processing times and increased chances of errors.

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However, with AI-backed document processing solutions, these limitations are a thing of the past. AI solutions (like turian) use LLMs and NLP to understand the context, meaning, and relationships between data points. This allows them to accurately extract data from complex and variable documents, understand the intent behind the data, and take necessary actions. For instance, an AI-based document processing solution can extract data from documents in any structure or language, validate and match the data with existing records, and automatically input/update the information in relevant systems (e.g., ERP, CRM) with less or no manual intervention. If there are any exceptions or errors (e.g., missing fields or mismatched data), the AI solution can send notifications to the relevant stakeholders for review and resolution. In other words, AI-based document processing solutions offer a complete end-to-end automation of the document processing workflow, from data extraction to validation and decision-making.

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Intelligent Document Processing (IDP) Explained

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What is Intelligent Document Processing?

Intelligent document processing (IDP) is a technology that automates the extraction, classification, validation, and processing of data from different kinds of documents, like PDFs, images, and emails. As we’ve said earlier, IDP solutions rely on a combination of technologies such as OCR, ML, and computer vision to automate the document processing workflow.

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How Does Intelligent Document Processing Work?

Well, here's a brief rundown of the IDP process:

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• Capture: First, the IDP solution captures documents and categorizes them based on their type, like sales order, invoice, or contract. It then utilized OCR to convert the scanned documents or images into digital text.
• Extraction: Once the documents are classified, IDP solutions pull out relevant data points from them using ML, OCR, or HTR. This may include information like customer name, address, invoice number, and more.
• Processing: Finally, intelligent document processing software processes the extracted data based on its intended purpose. It usually uses RPA to mechanically execute rigid workflows, like integrating data into an ERP or other business systems.

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Technologies involved in Intelligent Document Processing

Intelligent document processing solutions employed a combination of technologies to perform document processing tasks. These technologies include:

• Optical Character Recognition (OCR): OCR technology is used to convert different types of documents, like PDF files, scanned paper documents, or images captured by a camera, into editable and searchable digital text.
• Machine Learning (ML): ML algorithms are used to train the IDP system to analyze and understand patterns within the data so it can accurately identify and extract relevant information from documents.
• Robotic Process Automation (RPA): RPA technology is used to automate simple, repetitive tasks involved in document processing, like data entry, form filling, and updating and syncing data across different systems.
• Computer Vision: This technology enables IDP solutions to analyze and understand the visual information within documents, including structure, format, layout, and data points like tables and graphs.

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How Does AI-Powered Document Processing Work?

AI-based document processing, in general, involves four main steps: document capture, data extraction, data validation, and data integration into the desired system for further processing.

Here's a breakdown of how each step works in AI-powered document processing:

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1. Document Capture

The process starts with capturing the document, which can be in various formats such as PDFs, images, emails, or scanned documents. Let's take the example of an order confirmation received as a scanned PDF document via email, which is not of the best quality and also has handwritten notes on it.

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While most document processing solutions (like OCR-based) would not be able to handle this type of document, modern AI-based solutions (like turian) can accurately capture and process such documents.

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2. Data Extraction

Once the document is captured, the AI-based solution analyzes the email and looks for a reference that enables it to retrieve the corresponding data from the system.

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For instance, in the case of an order confirmation, the AI solution will check the subject line, email body, and document itself to find the reference. Once the reference is found, the AI solution makes a request to the system and extracts the general information for that order, like order date, total quantities, and total amount.

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3. Data Validation

After data extraction, AI systematically compares the extracted data with the existing data in the system. For example, in the case of an order confirmation, the AI solution would compare line items, prices, delivery dates, addresses, quantities, and any other relevant information that is typically checked for accuracy.

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If any deviations are found (like a change in the delivery date or price), the AI solution flags them for further review. This is what we call the human-in-the-loop principle, where AI saves time by analyzing and comparing data but leaves the final decision to a human user.

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4. Data Integration

Finally, once the deviations are identified and reviewed by a human user, the AI solution updates the system with the latest changes. In our example of an order confirmation, if the user accepts the updated delivery date, the AI solution will update the ERP system accordingly.

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This not only saves a lot of time and effort but also ensures accurate and up-to-date data in the system for further processing.

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But that's not all. Advanced AI-powered document processing solutions like turian can also generate smart replies to respond to the email sender and can even attach updated documents like a revised purchase order. As we've said earlier, turian doesn't just capture and extract data from unstructured documents, but it automates and streamlines entire document processing workflows, from data extraction and integration to decision-making and even communication.

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This makes it a powerful tool for businesses looking to save time, reduce errors, and streamline their document processing processes. With AI-based document processing, businesses can focus on more important tasks while letting AI handle repetitive and time-consuming document processing tasks.

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How Do AI Document Processing Solutions Address Common Workflow Challenges?

Imagine your procurement team manually sifting through hundreds of purchase orders while critical deadlines slip through the cracks. Or your sales team spends hours manually inputting sales orders into the system when they could be focusing on closing deals. These are just a few of the most common challenges that arise from inefficient document handling. Not to mention the increased risk of human errors, delays, and lack of visibility into document processing workflows.

AI-based document processing solutions can effectively address these common challenges by automating the entire document processing workflow, from document capture to validation and integration.

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6 Document Processing Challenges and How AI Solutions Can Help

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Let's explore how AI document processing tools can help businesses overcome common document processing challenges:

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Challenge 1: Data Inaccuracy

Manual data entry is not just time-eating; it's also prone to human error, resulting in inaccurate data being entered into the system. This can lead to many issues, including incorrect insights, poor decision-making, and the risk of compliance violations. AI-backed document processing tools eliminate the need for manual data input, thereby lowering the possibility of errors (e.g., typos, missing information).

These tools can effectively recognize, extract, and validate data utilizing large language models (LLMs) and advanced AI algorithms, ensuring data accuracy and consistency throughout the document processing workflow. This means you or your team don't have to waste time manually inputting data, cross-checking, and correcting errors; AI-powered solutions take care of it all.

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Challenge 2: Struggling in Handling Large Volumes of Data

As your business grows, so does the volume of data you have to process. Manual methods of document processing simply can't keep up with the increasing amount of data, which can lead to delays, missed deadlines, and customer dissatisfaction. Not to mention the additional costs of hiring more staff to handle the workload during peak times, which can significantly impact your bottom line.

AI-powered document processing solutions are designed to handle massive volumes of data quickly and accurately. AI solutions scale with your business, ensuring smooth processing of large amounts of data without sacrificing accuracy or speed. This means you don't need to worry about hiring additional staff or investing in costly infrastructure to handle a sudden influx of documents.

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Challenge 3: Difficulty in Handling Unstructured Data

Unstructured or semi-structured documents such as invoices, purchase orders, contracts, or sales orders lack a defined structure or format, making them challenging to process and extract data from. AI-driven document processing solutions use LLMs and NLP algorithms to understand the context and meaning of unstructured data and extract relevant information accurately. This reduces the time and effort required to process these documents manually, improving the overall efficiency of the document processing workflow.

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Challenge 4: Inability to Integrate with Existing Systems

If the extracted data from documents cannot be seamlessly integrated into your existing systems like ERP or CRM, it can cause bottlenecks and delays. This lack of integration means you or your team would have to spend extra time manually reformatting and reentering data, which not only slows down the process but also undermines the very goal of automation.

AI-powered document processing solutions are designed to integrate seamlessly with existing systems without disrupting the workflow. These tools can automatically input or update the extracted data into the required fields in your systems, ensuring data accuracy and integrity. With AI solutions, you can ensure a smooth flow of information across different systems, eliminating the need for manually reentering data.

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Challenge 5: Difficulty in Processing Multilingual Documents

Businesses that deal with international clients or operate in multiple countries often have to process documents in different languages. Manual processing of such documents can be a time-consuming and error-prone process, especially if your team is not proficient in the language or dialect. This not only slows down the document processing workflow but can also lead to misunderstandings and miscommunications.

AI tools for document processing excel at understanding and handling multiple languages with ease. With advanced NLP capabilities, these tools can accurately extract data from documents in various languages (e.g., English, German, Spanish, Chinese), making the process faster, more efficient, and error-free. You don't have to worry about language barriers or hiring multilingual staff; AI can handle it all.

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Challenge 6: Limited Visibility into Document Processing Workflow

Manual document processing often lacks transparency and provides limited visibility into the status of the processing or any potential errors. This can lead to a lack of control over the process, difficulty in tracking progress, and challenges in identifying and resolving issues in a timely manner.

With AI-backed document processing solutions, you get real-time visibility into the entire document processing workflow. These tools provide an intuitive dashboard that allows you to track the progress of each document, identify any bottlenecks or errors, and take corrective action if needed. This level of transparency and control ensures a smoother, more efficient document processing workflow.

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Streamline Your Document Processing Workflows with turian

If you're looking for a reliable, intelligent, and efficient solution to streamline your document processing workflows from start to finish, turian is what you need. Our AI assistants leverage the power of large language models (LLMs) to understand the context/meaning of your documents, extract relevant information, and automate tedious, repetitive tasks like data entry, document classification, and data validation. turian can handle different types of documents like invoices, POs, and sales orders in multiple formats, including PDFs, Word files, images, and handwritten notes.

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However, we know that LLMs alone can't provide a complete solution for document processing. This is why we have built additional layers of proprietary technology around the LLMs to ensure our AI assistants can handle the complexities of everyday business operations. turian uses RAG (Retrieval-Augmented Generation) to produce more accurate and contextually relevant outputs, as well as custom-built business rules and algorithms to maximize output quality and minimize errors.

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Our AI assistants can also perform complex tasks, like drafting email or message responses to customer inquiries and asking for missing or additional information from relevant parties. By automating these tasks, turian can significantly reduce manual work, increase efficiency, and free up valuable time for your employees to focus on more strategic tasks.

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With real-time insights and a user-friendly dashboard, turian allows you to track document statuses, identify bottlenecks, and make data-driven decisions. For instance, if a purchase order is missing certain information (e.g., delivery address), turian automatically flags it and sends an alert to the appropriate team for resolution, increasing data accuracy and avoiding costly errors.

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Unlike traditional document processing solutions (e.g., OCR-based tools) that require manual setup for each document type, turian is scalable and flexible, adapting to changing formats and languages seamlessly. Plus, you have complete control over your workflows, with the ability to set rule-based policies for sensitive information and human-in-the-loop decision-making.

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The best thing about turian is that it integrates seamlessly with your existing systems (e.g., ERP or CRM) and email platforms (e.g., Outlook or Gmail) without any additional hardware or training. turian is a ready-to-use solution that can be up and running in less than two weeks. If you want to test out turian before committing, we offer a free Proof of Concept so you can experience the benefits firsthand.

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Manually processing documents is a time-consuming and error-prone task, but with turian, you can streamline your workflows, boost efficiency, and achieve higher accuracy in your document processing.

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