Intelligent Document Processing (IDP) software has vastly improved business workflows and saves more time and costs. In some situations, IDP software has reduced manual data entry work by 97%!
IDP also brings new benefits to businesses, such as increased revenues.
Our IDP software, Grooper, is at the heart of what we do at BIS. In this blog, you will discover how IDP solutions can improve your business and what some common use cases are.
Table of Contents
Modernize Your IDP Software!
Discover How in Our Free Buyer’s Guide
Believe it or not, but most IDP software can’t keep up with today’s data demands. Unlock the secrets that separate modern IDP from old, incapable IDP with our FREE guide “7 Ways to Modernize Your Document Processing.”
Learn the cutting-edge technologies that will streamline your workflows and boost productivity!
Use Cases for Intelligent Document Processing (IDP Software)
IDP software is used across industries and in virtually every department to expedite and improve data processing workflows. While finance departments commonly automate accounts payable and invoice processing, many organizations are finding unique ways to process many different types of data that previously required manual effort.
Our solution users are finding new ways to leverage IDP software all the time. In fact, we created an annual award for the company that discovers a new way to use Grooper IDP to automate manual work.
Here are just a few of the many common use cases where IDP software is being used at businesses and government agencies:
Financial Services: Credit unions and banks use IDP software for customer onboarding, including processing new member applications, KYC documents, loan documents, tax forms, and balance transfer forms.
Digital Mailroom: Mailrooms use inbox automation through IDP to streamline incoming mail processing and document classification.
Higher Ed: Colleges and universities use IDP for student transcript processing to onboard student lead cards and student applications faster, and manage enrollment records.
Insurance: Insurance companies use IDP to streamline claims processing, manage insurance policies, and perform fraud detection.
Finance & Accounting: Companies of every size and in every industry leverage IDP every day for automated invoice processing and e-invoicing.
Public Sector: Federal government agencies use IDP solutions to digitize their citizen applications and forms.
State Government: Agencies use IDP to digitize records for fast retrieval, compliance, and better knowledge of internal operations.
Local Government: County governments use IDP to digitize archived public records for fast search and permit/license automation.
Energy & Operations: Energy companies use Grooper IDP for oil and gas data management by extracting data from leases they may purchase and digitizing other paper documents.
What is the Difference Between IDP Software, Document Processing, and OCR?
This can get confusing because people often use these terms in place of each other. But they refer to slightly different things.
Here are the similarities and differences:
| IDP Software | Document Processing | OCR | |
| A tool used by IDP and document processing | ✓ | ||
| Incorporates OCR | ✓ | ✓ | |
| Recognizes text on document images | ✓ | ||
| Recognizes text on electronic documents | ✓ | ||
| Organizes documents | ✓ | Sometimes | |
| Powers automated workflows | ✓ | ||
Uses AI tech to extract data | ✓ | ||
Extraction does not rely on strict templates | ✓ | ||
Easily expandable into new use cases | ✓ | ||
Flexible deployment options | ✓ |
OCR: The Foundational Tool
Optical Character Recognition (OCR) is just one of many tools used within the document processing pipeline. Its primary role is to recognize text on document images and convert it into machine-readable digital text.
While OCR makes documents searchable, it doesn’t “understand” the information—it simply translates pixels into characters. It is also limited to images; IDP software often extracts text from digital files (like PDFs or EDI) natively without needing CPU-intensive OCR.
Legacy Document Processing: Basic Digitization
Popularized in the late 1990s, legacy document processing uses basic OCR to digitize paper. It creates digital copies of documents so they can be indexed and stored in a database.
While helpful for basic digitization, it lacks the intelligence to handle modern, complex data challenges and has largely failed to meet the evolving needs of data-driven organizations.
Intelligent Document Processing (IDP): The AI Evolution
Created in the mid-2010s, IDP software represents the next generation of technology. It builds upon an OCR platform and goes several steps beyond simple digitization by incorporating artificial intelligence (AI), machine learning, and natural language processing (NLP).
Where legacy systems stop at “seeing” text, IDP focuses on understanding context and providing meaningful insights.
Solutions like Grooper (established in 2015) use advanced computer vision and generative AI (GPT/LLMs) to automate highly difficult, unstructured use cases that legacy systems can’t handle, such as:
- Explanation of Benefits (EOBs)
- Land Leases
- Mill Test Reports (MTRs)
- Detailed Line-Item Invoices
- Proof-of-Delivery Forms
IDP software doesn’t just scan. It classifies documents, organizes data into relevant fields, and validates information before exporting it to downstream business systems.
By using advanced techniques like multi-pass OCR, IDP provides a level of accuracy and functional intelligence that legacy document processing simply cannot match.
How Does IDP Software Work?
Specifically, intelligent document processing software converts data on document images into digital text that is usable by computers. There are 5 phases of IDP software:
- Importing the documents
- Cleaning up and recognizing document text
- Organizing documents
- Extracting the data
- Exporting data to business systems
They do this by using a variety of automation tools, like OCR, image processing, and many AI technologies like:
- Computer vision
- Natural language processing
- Machine learning
- Deep learning
- GPT models
IDP software was created for automated data extraction from scanned paper documents but can also get data from electronic documents. IDP solutions can get data from many different structures of documents, structured, semi-structured data, or unstructured documents and transform it into usable data.
Once the data is recognized and extracted, it is validated to ensure it is correct (optionally by a human-in-the-loop), and the documents / data are classified by preset business process rules.
The data and document images can then be exported for use in other business systems like ERPs, ECS/ECM systems, case management systems, workflow products, CRM systems, or any other system that needs the newly extracted data.
Key Benefits of Intelligent Document Processing (IDP) Software
IDP software shifts the focus from manual data entry to automated intelligence, offering significant advantages tailored to your specific business needs.
Whether you are managing accounts payable or complex insurance claims, these solutions transform document handling into a competitive asset.
Accelerated Speed and Efficiency
IDP solutions can reduce document processing time by 60% to 95%.
By eliminating manual bottlenecks, critical data reaches your ERP or business systems days or weeks faster than traditional methods.
Superior Data Accuracy
Nearly eliminate human “keying” errors and validation issues. This precision ensures more reliable data for reporting and drastically reduces the need for costly rework.
Increased Revenue and ROI
These automation solutions also help AP departments to capture early-payment discounts and avoid late penalties.
High-performing solutions like Grooper allow businesses to create new products and services by leveraging vastly improved data processing speeds.
Improved Employee Productivity and Satisfaction
Free your team from tedious, painstaking manual document processing.
Redirecting staff toward higher-value, strategic work, such as advanced decision-making and customer care, leads to a more fulfilling employee experience and higher retention.
Simplified Compliance and Security
Automatically identify and redact PII or PCI (personally identifiable or payment card information) to maintain strict data privacy.
Unlike paper-based systems, digital data is easily searchable, tightly controlled, and stored in secure, audit-ready locations.
Enhanced Decision-Making
Gain immediate visibility into internal operations and transactions.
With faster access to accurate information, leadership can make more informed, data-driven decisions in real-time.
What is Intelligent Document Processing (IDP) Software?
Intelligent document processing software is an evolution of technology using machine learning, NLP, and GPT/LLMs to transform scanned images into digital data. It automates workflows by eliminating tedious manual data entry, converting document content into text for computers to process and humans to leverage.
These solutions handle structured, semi-structured, and unstructured layouts like invoices or emails. Beyond simple scanning, IDP classifies documents and extracts data for downstream business systems, enabling faster integration while reducing manual intervention across various digital and physical document formats.
Features of IDP Software
Modern IDP solutions are defined by their ability to go beyond simple text recognition, transforming documents into actionable intelligence through a sophisticated multi-stage workflow.
Core Technical Features
At its foundation, IDP leverages OCR and Computer Vision to “read” layouts like a human would. Document Classification then automatically categorizes incoming files (such as invoices or contracts) to route them into the correct business process.
Using Machine Learning and Natural Language Processing (NLP), the system performs Intelligent Data Extraction, pulling specific fields and meaningful insights from even the most complex, unstructured content.
Enterprise Features
- Accuracy & Validation: Systems use business rules and cross-referencing to ensure Data Validation, minimizing errors before they reach your ERP or CRM.
- Human-in-the-Loop (HITL): This critical feature routes low-confidence data to human experts for verification, which in turn “retrains” the AI to improve over time.
- Seamless Integration: Robust APIs and pre-built connectors allow for easy deployment across existing enterprise ecosystems.
- Scalability & Security: Built for high-volume processing, these platforms offer Scalability alongside strict Compliance features—like automatic PII redaction—to protect sensitive information.
- Low-Code Interface: Intuitive, User-Friendly Interfaces allow business teams to configure and monitor workflows without extensive IT resources.
How to Choose IDP Software for Your Organization
Choosing the right IDP software requires a strategic approach that balances your current data processing needs with long-term scalability. The most effective selection process begins by identifying your specific use cases and evaluating whether your data is primarily structured, semi-structured, or unstructured data.
Compare the top IDP vendors to see which is right for your organization. Or try it out now for yourself:
Key Evaluation Criteria:
- Accuracy and Performance: Look for solutions that provide high accuracy benchmarks. The software should use advanced AI/ML and Natural Language Processing (NLP) to handle varied layouts and handwriting recognition without relying on rigid templates.
- Seamless Integration: Ensure the platform offers robust APIs for seamless integration with your existing ERP, CRM, and IT infrastructure.
- Ease of Use: Prioritize a user-friendly interface with low-code/no-code options. This allows business users to manage workflows and handle exceptions through Human-in-the-Loop (HITL) verification without extensive technical expertise.
- Security and Compliance: The vendor must guarantee robust security and regulatory compliance (such as GDPR or HIPAA) to protect sensitive information.
- Vendor Support and ROI: Evaluate the total cost of ownership and the level of ongoing support provided. A partner committed to continuous improvement ensures your solution remains future-proof as your document volumes grow.
IDP Frequently Asked Questions
How do I choose an IDP solution?
Choosing an IDP solution involves evaluating how well it handles your specific document types, volumes, and complexity. Look for accuracy, flexibility, ease of configuration, integration capabilities, and scalability. The best solution should support both structured and unstructured documents, fit your workflows, and deliver measurable improvements in speed and data quality.
What makes one IDP platform better than another?
The best IDP platforms stand out based on their ability to handle complex documents, adapt to variable layouts, and deliver consistent accuracy. Key differentiators include support for unstructured data, advanced data modeling, configurability, and end-to-end workflow automation. Platforms that require less rigid templating and offer greater flexibility typically provide more long-term value.
