FAQ: Intelligent Document Processing

Intelligent Document Processing (IDP) is a technology that is transforming how companies manage document workflows. More and more organizations are looking for solutions to automate the processing of paper and digital documents, improve operational efficiency, and reduce errors.

In this article, we answer the most frequently asked questions about IDP: what it is, how it works, its benefits, and practical applications.
If you're looking to transform your document processes with artificial intelligence, you're in the right place.

What is the IDP?

Intelligent Document Processing is a technology that automates document processing, going far beyond simple Optical Character Recognition (OCR).
It uses AI, Machine Learning (ML), and Natural Language Processing (NLP) to extract data from structured, semi-structured, and unstructured documents, reducing manual effort, time, and errors.

How is it different from OCR?

OCR (Optical Character Recognition) is limited to converting printed or scanned text into a digital format. It simply reads the text and returns it as machine-readable data.

IDP, on the other hand, goes beyond basic recognition: it can understand context, identify key information, extract relevant data, and integrate it into your business systems. For example: while OCR might read the total amount on an invoice as just a number, IDP understands that this number is the invoice total that needs to be booked into accounting.

Why adopt IDP?

Many companies handle large volumes of documents daily, in various formats and structures.
By automating document reading and data extraction, IDP helps to:

• save time
• reduce human error
• boost productivity and quality

With IDP, repetitive tasks are delegated to machines, allowing your team to focus on higher-value activities.

What types of documents can IDP process?

IDP handles three main categories of documents:

• structured, such as forms or documents with a fixed layout (e.g. identity cards).
• semi-structured, such as invoices or bills, where the data is always present but the provision may vary.
• unstructured, such as emails, contracts, reports or legal documents, in which the information is freely inserted into the text.

How does an IDP system work?

IDP is not a single tool, but a multi-step process combining several technologies to deliver end-to-end document automation:

• OCR – for text recognition
• Computer Vision – to understand document layout and visual structure
• Natural Language Processing (NLP) – to interpret meaning and context
• Robotic Process Automation (RPA) – to integrate extracted data into business workflows

What are the phases of an IDP process?

A complete IDP workflow typically involves six phases:

1. reading: document structure is analyzed (tables, images) using Computer Vision and OCR
2. classification: documents are categorized automatically (e.g. ID, payslip)
3. data extraction: key information (dates, names, amounts) is accurately captured
4. validation: data is checked via human review, databases, or pre-configured rules
5. enrichment: extracted data is enhanced with additional external or internal information
6. integration: data is sent to business systems via RPA or no-code tools, creating a smooth, end-to-end workflow

What are the concrete benefits?

The benefits are:

• faster document processing times;
• greater accuracy through error reduction;
• automation of repetitive and manual tasks;
• scalability across high document volumes;
• full traceability of each step.

What are some practical applications of IDP?

IDP can be applied across multiple industries:

• financial services: automate income verification, risk analysis, and customer onboarding
• insurance: process claims and policy documents efficiently
• utilities & energy: automate bill processing for offer comparison and new subscriptions
• legal & real estate: streamline contract and land registry document management‍
• human resources: accelerate payroll processing, CV screening, and ID verification

What are the main challenges?

Among the most common obstacles are:

• poor quality documents (e.g. blurry scans, inconsistent formats)
• integration difficulties with legacy systems
• keeping models up to date
• compliance with privacy regulations like GDPR

How do you start an IDP project in a company?

Everything begins with a thorough analysis of your current document workflows—understanding the volumes, the types of documents processed, and identifying any existing bottlenecks. This assessment provides the foundation for selecting the most appropriate technology and for setting clear, measurable objectives. Implementation should follow a gradual approach, starting with a well-defined use case and then progressively expanding to other areas as the solution proves its value.

Conclusion

‍Intelligent document Processing is not just a time-saver: it’s a strategic tool for operational transformation. To get the most out of the IDP, it's important to follow a few basic steps:

• analyze current document flows
• plan a phased implementation
• monitor system performance regularly
• train your team to use IDP effectively

By doing so, you’ll unlock benefits like improved efficiency, regulatory compliance, and enhanced customer satisfaction.
Success lies in a well-integrated, continuously improved approach to automation.

Do you want to find out how to apply the IDP in your company? Book a call for more information!