Efficiency and Accuracy in Intelligent Document Processing (IDP)

Efficiency and Accuracy in Intelligent Document Processing (IDP)

Intelligent Document Processing (IDP) has revolutionized the way organizations handle document-based
data extraction and processing. By leveraging artificial intelligence (AI) technologies such as optical
character recognition (OCR), natural language processing (NLP), and machine learning (ML), IDP enables
the automation of manual document handling tasks. This blog post explores the benefits, challenges,
and considerations associated with IDP and how it enhances both efficiency and accuracy in data
extraction.

Understanding Intelligent Document Processing

IDP involves the use of AI technologies to automatically extract information from documents. It
encompasses OCR, NLP, and ML algorithms that analyze document content, structure, and format to
extract relevant data points. Various types of documents, such as invoices, contracts, forms, and
receipts, can be processed using IDP.

The Benefits of Intelligent Document Processing

Implementing IDP offers several advantages for organizations:
1. Increased efficiency and time savings: Automation reduces manual efforts and speeds up
document processing, enabling organizations to handle larger volumes of documents within
shorter timeframes.
2. Reduction in manual errors and improved accuracy: IDP minimizes human errors associated with
manual data entry, leading to higher accuracy and data quality.
3. Enhanced scalability and handling of large document volumes: IDP allows organizations to
handle high volumes of documents without the need for additional resources, improving
scalability.
4. Improved compliance and data security measures: IDP helps enforce compliance by accurately
capturing and storing information while ensuring secure handling of sensitive data.
5. Enhanced customer experience and faster response times: By automating document processing,
organizations can provide quicker responses to customers, improving overall customer
experience.

Challenges in Achieving 100% Accuracy

Although IDP can significantly improve accuracy, achieving 100% accuracy is challenging due to various
factors:

Document quality and variability: Poor document quality, such as low-resolution scans or
distorted images, can impact accuracy. Additionally, documents with different layouts, fonts,
languages, and styles add to the complexity.

1. Complex or unstructured information: IDP is better suited for structured or semi-structured
   documents. Extracting data from complex or unstructured documents, like handwritten forms or
   free-form text, can introduce errors.
2. Machine learning limitations: IDP systems rely on ML algorithms that require training on
   representative datasets. Models may not generalize perfectly to all scenarios, affecting
   accuracy.
3. Handling exceptions and edge cases: Certain document variations or exceptional cases may
   require human intervention or review to ensure accurate data extraction.

To maximize accuracy, organizations can employ the following strategies:

1. Training with diverse data sets: Training the IDP system on diverse datasets that represent
   different document types, formats, and languages improves accuracy and generalization.
2. Testing, validation, and continuous improvement: Thorough testing and validation processes
   using separate test documents help assess the system's accuracy. Continuous improvement
   based on user feedback and analysis of error patterns refines the system over time.
3. Human validation and review processes: Implementing a human validation or review step allows
   for error identification and correction. Human operators verify the accuracy of extracted data,
   contributing to improved accuracy.
4. Iterative refinement and feedback loops: Incorporating feedback loops that leverage user
   interactions and corrections helps update and improve the system's accuracy.
5. Setting realistic goals and prioritizing critical data points: Identifying critical data points and
   focusing on achieving high accuracy for those prioritized areas ensures efficient automation
   while maintaining accuracy.

Achieving Straight-through Processing (STP) with IDP

While accuracy is crucial, STP involves automating processes without manual intervention. It requires a
balance between automation and human validation. Factors like document quality, standardization,
exception handling, and continuous learning contribute to achieving STP with IDP.
Determining which data points can skip human validation requires careful consideration and analysis
based on several factors:

1. Confidence levels and thresholds: Evaluate the confidence scores or probabilities assigned by
   the IDP system to extracted data points. Higher confidence scores indicate greater accuracy.
   Setting appropriate thresholds allows you to identify data points with sufficient confidence to
   skip human validation.
2. Analyzing historical performance: Review the system's historical performance on similar
   document types. Identify data points that consistently exhibit high accuracy and lower error
   rates. These data points may be considered for exemption from human validation.
3. Business rules and requirements: Consider the specific business rules and regulatory
   requirements of your organization. Identify data points critical to decision-making or
   downstream processes. Data points with lower impact or lower risk may be exempted from
   human validation.
4. Document complexity: Assess the complexity of the document type or format. Structured and
   standardized documents are more amenable to accurate automated processing. Data points
   extracted from simpler documents may have higher accuracy rates and can potentially skip
   human validation.
5. Risk assessment and impact analysis: Perform a risk assessment to determine the potential risks
   associated with different data points. Assess the impact of errors or inaccuracies for each data
   point. Data points with lower associated risks may be suitable for exemption from human
   validation.

The Benefits of a Built-in Human-in-the-loop (HITL) Service

While the goal of Intelligent Document Processing (IDP) is to automate document handling and data
extraction processes, incorporating a built-in Human-in-the-loop (HITL) service can strongly benefit an
IDP implementation. The HITL service involves integrating a human validation and review step within the
automated IDP workflow. Here are some key benefits of utilizing a HITL service:

1. Enhanced Accuracy and Quality Assurance: Despite the advancements in AI technologies,
   there are instances where automated data extraction may encounter challenges, especially
   with complex documents or ambiguous data points. By involving human validation and
   review, potential errors or discrepancies can be identified and rectified, significantly
   improving accuracy and ensuring high-quality outputs.
2. Handling Complex and Ambiguous Cases: Certain document types or data points may
   require human judgment and expertise to accurately interpret and extract the information.
   The HITL service allows human operators to handle such complex cases, ensuring precise
   extraction even in scenarios where automated processes may fall short.
3. Training and Feedback Loop Improvement: The involvement of human reviewers in the HITL
   service provides an opportunity to capture feedback and insights. Human reviewers can
   identify patterns of errors, provide suggestions for system improvement, and contribute to
   refining the underlying AI models. This iterative feedback loop helps enhance the accuracy
   and performance of the IDP system over time.
4. Adapting to Changing Requirements and Regulations: Incorporating a HITL service enables
   organizations to quickly adapt to evolving requirements and regulations. Human operators
   can validate the compliance of extracted data, ensuring that it adheres to specific rules and
   guidelines. This flexibility is crucial in industries that undergo frequent regulatory changes or
   have unique business rules.
5. Confidence and Trust Building: For organizations adopting IDP for the first time or dealing
   with sensitive data, the HITL service can instill confidence and build trust. The human
   validation step reassures stakeholders that critical data points receive human oversight,
   mitigating concerns related to accuracy and data integrity.
6. Error Resolution and Customer Satisfaction: In cases where errors occur, the HITL service
   provides a mechanism to promptly address and resolve them. Human operators can rectify
   mistakes, preventing downstream consequences and maintaining high levels of customer
   satisfaction.
7. Compliance and Audit Trail: The HITL service offers organizations the ability to maintain a
   robust compliance framework. Human validation and review actions can be documented, creating an audit trail for regulatory purposes. This transparency supports organizations in
   meeting compliance requirements and demonstrating accountability in data processing.

While IDP systems aim to automate document processing and data extraction, the integration of a built-
in Human-in-the-loop (HITL) service can significantly enhance accuracy, handle complex cases, and
provide valuable feedback for continuous improvement.
By combining the capabilities of AI technologies with human judgment and expertise, organizations can
achieve optimal results in their IDP implementations. The HITL service ensures high-quality outputs,
adaptability to changing requirements, and customer satisfaction, ultimately driving the success of IDP
initiatives.

Comparing a Built-in Human-in-the-loop (HITL) Service to Customer-built HITLTeams

When implementing Intelligent Document Processing (IDP) solutions, organizations have two options
when it comes to incorporating a Human-in-the-loop (HITL) service: leveraging a built-in HITL service
provided by the IDP solution provider or building their own HITL team. Let's explore the advantages and
considerations of each approach:
Built-in HITL Service:

1. Convenience and Integration: A built-in HITL service offered by the IDP solution provider
   offers convenience in terms of integration. It seamlessly integrates within the IDP workflow,
   eliminating the need for additional setup and configuration.
2. Expertise and Experience: Solution providers offering a built-in HITL service often have deep
   expertise and experience in document processing and data extraction. They understand the
   intricacies of different document types, common challenges, and effective validation
   techniques. Leveraging their expertise can lead to more accurate and efficient data
   extraction.
3. Scalability and Resource Management: Solution providers can scale their HITL services based
   on the needs of their customers. This scalability ensures that organizations can handle larger
   volumes of documents without worrying about resource allocation or workforce
   management.
4. Continuous Improvement: Built-in HITL services benefit from continuous improvement
   efforts undertaken by the solution provider. They can incorporate user feedback, refine AI
   models, and enhance the overall accuracy and performance of the IDP system over time.

Customer-built HITL Teams:

1. Tailored Expertise: Building an in-house HITL team allows organizations to tailor the
   expertise to their specific needs. They can train the team to handle industry-specific
   documents, compliance requirements, and unique data extraction challenges. This targeted
   expertise can lead to better accuracy and understanding of domain-specific nuances.
2. Control and Customization: Organizations have complete control over the HITL process,
   including the selection of team members, training, and validation protocols. They can
   customize the workflows, rules, and validation criteria to align with their specific business
   needs and regulatory requirements.
3. Data Sensitivity and Security: For organizations dealing with highly sensitive data or strict
   data privacy regulations, an in-house HITL team may provide better control and assurance
   over data security. It allows organizations to maintain data handling protocols and security
   measures internally, reducing concerns related to data privacy and confidentiality.
4. Cost Considerations: Building and managing an in-house HITL team comes with associated
   costs such as recruitment, training, and ongoing maintenance. Organizations need to
   carefully evaluate whether the cost of building and managing a team outweighs the benefits
   and convenience offered by a built-in HITL service.

The decision to choose between a built-in HITL service or a customer-built HITL team depends on the
organization's specific needs, resources, and priorities. A built-in HITL service offers convenience,
expertise, scalability, and continuous improvement from the IDP solution provider.
On the other hand, a customer-built HITL team provides tailored expertise, control, customization, and
potential advantages for organizations with stringent data privacy and security requirements.
Ultimately, organizations should evaluate their requirements, cost considerations, and strategic
objectives to determine the most suitable approach for integrating a HITL service into their IDP
implementation.

Start now your All-Inclusive IDP journey

At DocDigitizer, we believe in an outcome-driven Intelligent Document Processing model where our
customers don’t need to worry about the complexities of implementing and maintaining their IDP
implementation.
Our unique All-Inclusive model allows organizations to benefit from straight throughput document
automation, with built-in training on the fly providing 6x faster time to value compared to traditional
IDP. On top of our pre-built models, we take care of any fine-tuning required to handle any document
format on the fly when needed, if needed. By not requiring any warm-up, we avoid spending weeks on
setup and model training, enabling organizations to process any document immediately.
We also built-in to DocDigitizer, a Human-in-the-loop verification process that allows our customers to
remove any manual step on their end entirely and always receive nearly 100% accurate data, backed up
by SLA and a refund policy. Our built-in HITL, allows customers to use our data output to make decisions
and reduce their lead times from hours (that often is what they take to review the IDP outcome) to a
few minutes.
All these features are available with a full pay-per-use model for any industry and document type,
including handwritten and unstructured documents. They include advanced capabilities such as fraud
detection, data anonymization, complex table processing, and signature detection.
Our all-inclusive approach is particularly relevant for:

. Straight Throughput Document Automation – Companies looking to remove any manual
validation.
. Long-tailed Use Cases – Use cases with a high variability of format and layouts.
. Complex Use Cases – Use cases that required advanced capabilities such as handwritten
processing, unstructured document processing and fraud analysis.

Book a meeting and learn more about how you can start your all-inclusive journey.