Glossary
What is intelligent document processing (IDP)?
By Tim White · Last updated
Intelligent document processing, or IDP, is the use of AI, OCR, and machine learning to read documents like invoices, forms, and receipts and turn them into structured data with little manual entry. It goes beyond plain OCR by understanding which text is which field and by handling messy, varied layouts. Invoice extraction is one focused application of IDP.
IDP versus plain OCR
OCR turns an image into characters. It does not know which number is the total or whether it read the total correctly. IDP adds the understanding on top: it identifies the fields, reads the layout, and validates what it found. OCR is one input to IDP, mostly for scans and photos, not the whole of it.
IDP for invoices specifically
Invoices are high-variance and high-stakes, so the useful question is not whether a system can read one but whether it knows when it is unsure. InvoiceJet answers that with two models that must agree, math checks on the totals, and a confidence level plus source citation on every field. Anything uncertain is queued for a person rather than trusted, which is what makes the automation safe to rely on.
Common questions
Is IDP the same as OCR?
No. OCR only produces text. IDP uses OCR as one input, then identifies fields, understands layout, and checks the result, which is the part that makes the data usable.
Where is IDP used besides invoices?
Forms, identity documents, contracts, and loan paperwork are common. Invoices are one of the highest-value uses because the output feeds straight into payment.
Sources
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