Intelligent Document Processing (IDP), aka intelligent data extraction, is a powerful technology that leverages AI to read and extract data automatically from documents.
So, how might an IDP solution improve your business operations (and bottom line) on a practical level?
Let’s take a look at three core benefits of a well-implemented IDP tool:
By eliminating costly manual errors, wasted time and missed business opportunities, businesses can save between 75-90% of data extraction costs.
Freeing highly-skilled workers from repetitive data entry allows them to tackle higher-value tasks, significantly increasing business productivity. A study by the Harvard Business Review supports this, reporting that over 90% of workers agreed that automation increased their productivity.
According to the World Economic Forum, automation technologies like IDP reduce paper usage and ultimately deliver a smaller carbon footprint for businesses.
As Gartner identified in 2023, over 60 IDP solutions are currently on the market, which doesn’t count ongoing internal development efforts. Of these, some IDP solutions will inevitably outperform others.
Are you wondering if your current model is performing as it should? Here are the top signs that it’s time to upgrade to a superior IDP solution.
It’s tempting for firms to prioritise their back-end technology. However, we cannot overstate the software’s front end’s importance – specifically, its user interface (UI). As Ken Norton, formerly of Google, noted, “UI is focused on the user’s journey to solve [a] problem.” In other words, the UI should never create problems. After all, IDP users are trying to convert information into actionable insights, and the tool’s UI shouldn't hinder this goal.An IDP should also allow for a smooth data flow from input to output. Uploading the document and downloading the data into the desired format should take only a few seconds from the UI, even for users with a non-technical background.Once you’ve found an IDP solution that could work for your team, it’s important to note that a live demo may present a misleading depiction of the UI’s usability. An effective way to assess whether a UI is ergonomic is to ask for a Proof of Concept (PoC) or trial where your team can assess usability directly without committing to a contract.
Why is that data point missing? Why is this column misaligned? Why is it a CSV rather than an Excel file?If you constantly tweak the IDP software’s output to your specifications, the tool’s flexibility is severely limited. Your IDP solution should reduce your document processing time by at least 90%.
An IDP tool that deploys internal consistency checks will flag errors for manual validation, but these should be sparse (i.e., preferably fewer than 1 in every 1000 data points). Though IDP technology will require initial training and a short adjustment period, the tool’s performance should improve quickly and adapt to your company’s needs. As a result, the output should meet your specifications. If not, the IDP solution is inadequate for your company’s requirements.
Your team may change or expand over time, which makes seamless user management a priority. The tool should enable users to manage their passwords and accounts to reduce the burden on your IT department.However, if user management is a headache, your IDP solution’s design is insufficiently intuitive. Note that a well-calibrated IDP solution will generally offer a generous user limit.Whether you’re deploying the tool in a large team or solo, if you’re experiencing friction with user management, it may be a sign of long-term incompatibility.
An IDP solution can initially drain a company's budget through hidden costs, implementation or support fees. Even worse, constant repairs and intervention compromise the solution’s long-term ROI. Finally, the solution is underperforming if you’re constantly volleying emails with the IDP’s engineering or customer service department. Let’s examine Unigestion’s experience with some of these issues. Their first data extraction vendor delivered data with 30% accuracy. Since Unigestion adheres to a zero-tolerance policy for errors, their team changed course – deciding to extract from quarterly reports manually. The result? Inflated costs, an overall loss in productivity and countless wasted hours.Before investing in a new IDP tool, consider checking the vendor’s case studies to verify the tool’s long-term reliability. If all the case studies are less than a year old, there is insufficient evidence of the tool’s long-term performance capabilities. There is no better evidence of the reliability of an IDP technology than noteworthy clients who have remained with the vendor for years.
Automation technologies are designed to reduce the costs and time associated with infrastructure maintenance. Yet a poorly constructed IDP technology will struggle with greater demands. For instance, one sign that your IDP is not up to the job is if you upload a large batch of documents simultaneously, and the output is:
A cloud-based IDP tool is the foundation of a scalable solution. However, multiple technological aspects will allow your IDP solution to grow with your company. If your current solution is lacking as your document demands grow, it may be easier to switch providers.
Though it may not be immediately obvious, an underperforming IDP solution can be a black hole for your business – infinitely consuming your time and resources. However, there are always noticeable signs that the output of the IDP project isn’t going in the direction your company requires.
As one of our clients once noted, letting the data speak for itself is important. Although IDP tools will vary greatly in functionality, target audience and design, one thing they will all have in common is that they put data first and foremost.
We can summarise all indicators of an underperforming IDP solution into one question: Is the IDP’s output fast, accurate, accessible and affordable?
If the answer is no, it’s time to upgrade.
Evolution AI has worked closely with clients like NatWest, Hitachi Capital and Dun & Bradstreet to develop a multi-award-winning IDP solution.
Are you interested in learning more? Email our team at hello@evolution.ai or book a demo.
