What’s the Difference Between OCR & IDP?
Optical Character Recognition (OCR) is a well-known method of data extraction that a wide array of industries use. However, this technology has significant limitations that can lead to errors in how data is processed. As a result, these mistakes can be quite costly to businesses.
IDP, on the other hand, allows for the intelligent processing of critical business documents. This technology does leverage OCR, however, provides the flexibility and continuous improvement while minimizing OCRs margin of error. This means data processing is far more accurate and timelier than OCR focused solutions.
What is Optical Character Recognition (OCR)?
OCR is an application software that allows users to scan documents so they can be turned into a machine-readable format. OCR is useful because it enables a computer to read written or printed information that needs to be extracted into machine readable data.
There are a lot of industries that have historically relied on this technology because they deal with document processing and data daily. This includes the healthcare industry, banking and financial, as well as the real-estate and mortgage industry.
What is AI & How Does it Work with Document Processing?
Intelligent Document Processing (IDP) is the adoption of machine learning automating previously manual tasks allowing employees to streamline workflows and leverage team members subject matter expertise. It works by intelligently processing documents in such a way that the machine understands the data just as a human would, as opposed to just recognizing characters. The critical component to this process is human reinforcement learning meaning humans with subject matter expertise look for inaccuracies in the results, corrects them and feeds the corrected results back into the machine, retrain the machine with the corrected results, so it can learn and continuously improve its accuracy.
OCR vs. Intelligent Document Processing: Who Comes Out on Top?
OCR essentially pulls text from a document such as an image or PDF and merely transcribes the document data. It doesn’t look for errors or try to interpret what this data might mean.
OCR also doesn’t do a great job at maintaining the format of the data as reflected on the documents meaning which quickly breaks down with unstructured documents. This means solutions solely based on OCR don’t scale well when there is a variation in the format of documents.
AI will correctly identify key data fields within the document and allow for automatic data extraction. This is because AI determines the meaning of the data, instead of just reading it. As a result, data processing is far more accurate and costly mistakes are drastically reduced.
Why Choose Armordoc?
ArmorDoc serves the mortgage industry with high quality Intelligent Document Processing. By classifying, organizing, and extracting unstructured data from complex mortgage documents, you receive accurate results while saving valuable time and money. With ArmorDoc’s help, you can get back to doing what you do best - taking care of your business.
Don't hesitate to reach out to us directly with any questions or to schedule a demo! info@armordoc.com