What is intelligent document processing (IDP)?
By Tim White · Glossary · Last updated
Intelligent document processing, or IDP, uses OCR and AI to read documents such as invoices, forms and receipts and turn them into structured data with little manual entry. It goes beyond OCR by working out which text belongs in which field. Invoice data extraction is one focused kind of IDP.
IDP vs OCR
OCR turns an image into characters. IDP adds the understanding on top: it finds the fields, handles different layouts and checks what it found. OCR is one input to IDP, needed mainly for scans and photos.
What to ask of an IDP tool
Whether it can read your documents is the easy question. The useful one is whether it tells you when it's unsure. Ask how it flags uncertain fields, whether you can see where each value came from, and what checks run beyond reading the text. For invoices, InvoiceJet answers with two models that must agree, a math check on the totals, and the source text for every field.
Common questions
Where else is IDP used?
Forms, contracts, ID documents and loan paperwork. Invoices are a common starting point because the data feeds straight into payments.
Sources
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