What Is AI Document Processing?
TL;DR
AI Document Processing (IDP) uses Large Language Models to turn messy PDFs into clean, structured data. It's the difference between "reading" text and "understanding" data.
AI Document Processing (IDP) is the use of artificial intelligence and machine learning to extract structured data from unstructured documents like PDFs, images, and scanned forms.
Unlike traditional OCR (Optical Character Recognition), which simply turns images into text, IDP understands context. It knows the difference between a total amount, a tax rate, and an invoice number based on its position and surrounding labels.
Why It Matters
Moving away from manual data entry allows teams to:
- Reduce Errors: Human fatigue leads to typos. AI stays consistent.
- Save Time: Process hundreds of documents in the time it takes a human to do one.
- Scale: Handle sudden spikes in document volume without hiring more staff.
"Read the full technical guide in our documentation"
Get Started →How Extractify Solves This
Traditional IDP tools are often "black boxes" that give you what they think is right without explanation. Extractify uses a validation-first approach. We don't just extract the text; we cross-reference it against your business rules.
For example, if an invoice subtotal and tax don't add up to the total, Extractify flags it for review immediately, rather than letting bad data enter your ERP.
Business Impact: Why This Becomes Expensive at Scale
One misread digit is annoying. A misread invoice across 10,000 documents is a $100,000 accounting nightmare.
By automating the "understanding" layer of your document flow, you're not just saving time you're building a defensive layer against data corruption in your core business systems.