Understanding IDP: What Does Intelligent Document Processing Stand For?

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What Does Intelligent Document Processing Stand For?

Intelligent Document Processing (IDP) is a technological innovation that allows organizations to extract meaningful information from unstructured data sources. In simpler terms, IDP is a solution that enables businesses to automate the processing of various types of documents, including invoices, purchase orders, contracts, and financial statements.

It utilizes Artificial Intelligence (AI), Machine Learning (ML), and Natural Language Processing (NLP) technologies to extract, analyze, and classify data from different types of documents, improving operational efficiency and reducing costs.

IDP offers several benefits, including increased accuracy and efficiency in document processing, reduction in manual errors, and improved data quality. It enables organizations to automate routine tasks, freeing up employees to focus on more complex and value-added tasks, thereby enhancing their productivity. Furthermore, IDP provides organizations with real-time insights and analysis, allowing them to make informed decisions based on accurate and timely data.

The IDP process consists of several steps, starting with document ingestion, where documents are scanned or uploaded into the system. The system then applies OCR (Optical Character Recognition) technology to convert scanned documents into machine-readable text. Once the documents are converted into digital format, NLP technology is used to extract relevant information from the documents. This information is then validated and verified to ensure accuracy and completeness.

Finally, the data is classified and routed to the appropriate system or application for further processing or action. The IDP system can integrate with other enterprise systems, such as ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems, to ensure seamless data transfer and processing.

IDP solutions are becoming increasingly popular among businesses in various industries, including finance, healthcare, legal, and manufacturing. For example, in the healthcare industry, IDP can help automate the processing of medical records, insurance claims, and invoices. In the legal industry, it can help extract relevant information from contracts and legal documents, reducing the time and effort required for manual review.

IDP Use Cases.

Here are some of the key use cases of IDP.

  1. Invoice Processing: IDP can be used to automate invoice processing, which is a time-consuming and error-prone task for many organizations. With IDP, invoices can be scanned and digitized, and the relevant information can be extracted and validated automatically. This can significantly reduce the time and effort required for manual processing, improve data accuracy, and speed up the payment process.
  2. Purchase Order Processing: IDP can be used to automate the processing of purchase orders, including order confirmation, order tracking, and delivery confirmation. This can help organizations streamline their supply chain management, reduce manual errors, and improve data accuracy and consistency.
  3. Contract Management: IDP can be used to extract and manage contract data, including clauses, terms, and conditions. With IDP, legal professionals can automate routine tasks such as document review, reducing the time and effort required for manual review and improving productivity. This can help organizations reduce legal risk, improve compliance, and enhance overall contract management.
  4. Healthcare Records Management: IDP can be used to automate the processing of healthcare records, including medical records, insurance claims, and invoices. This can help healthcare organizations improve patient care by reducing administrative tasks and improving the accuracy and speed of data processing.
  5. Financial Statement Processing: IDP can be used to automate the processing of financial statements, including income statements, balance sheets, and cash flow statements. With IDP, financial professionals can analyze financial data in real-time, reducing the time and effort required for manual processing and improving data accuracy.

Where to start?

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.


Intelligent Document Processing is a highly effective technology that enables organizations to extract meaningful information from unstructured data sources, reducing manual errors, improving data accuracy and consistency, and enhancing productivity across the organization. With its advanced AI, ML, and NLP capabilities, IDP is transforming the way businesses manage their data, allowing them to make better decisions and improve their overall operational efficiency.