What is Intelligent Document Processing? Steps to Customize IDP for Maximum Impact

Quixy Editorial Team

February 21, 2025

Data is the lifeblood of any modern business, but unorganized records often confine it. Unleashing this valuable information is the bottom line for making informed decisions, optimizing business processes, and staying ahead of competitors.  

Intelligent Document Processing (IDP) is the key to data extraction from various documents and formats. It empowers businesses and harnesses complete potential information.  

If that sounds like a significant promise, keep reading to see why.  

According to research, the world will undergo a significant shift in invoice processing, especially in the B2B marketplace.

This major shift towards automation in document management leverages the need for customized technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Optical Character Recognition (OCR) to automate the extraction, classification, and building of custom validations of data from a various of documents. 

What is Intelligent Document Processing (IDP)? 

Intelligent Document Processing (IDP) is a method of extracting data from physical documents and digital formats and seamlessly integrating it into business workflows. Traditionally, businesses rely on manual data entry, which can introduce delays and errors when processing high volumes of documents like forms, contracts, or invoices.  

Consider a loan approval process. The bank staff usually extract data manually from documents for income proofs and ID forms. But these traditional methods slowdowns the process of approvals and increase errors.  

With IDP, the system extracts and organizes relevant data from these documents, validating it and feeding it directly into the bank’s loan processing system. By integrating IDP, banks can eliminate the need for manual data entry, reducing errors, speeding up approvals, and improving customer experience.  

Benefits of Customizing Intelligent Document Processing 

IDP leverages advanced technologies to read, extract, and process unstructured data. It is beneficial for industries that handle high volumes of paperwork. It helps improve efficiency, accuracy, and scalability while reducing the need for manual intervention. Below are the key benefits of IDP that businesses can capitalize on. 

Scalability 

Businesses using IDP can process vast amounts of documents quickly and with higher accuracy. Unlike traditional document handling, it is not time-consuming nor prone to errors. IDP solutions extracts information precisely allowing businesses to handle high operational demands, even during peak periods, without compromising accuracy or speed. 

Cost Efficiency 

By adding automation to repetitive tasks such as data entry, document classification, and validation, IDP significantly reduces operational costs. It minimizes the need for large teams dedicated to manual document processing, freeing resources for more strategic, value-driven tasks. 

Enhanced Customer Experience 

IDP improves customer satisfaction by speeding up document-centric processes such as onboarding, payments, and service requests. Automating these processes reduces wait times, allowing businesses to respond to customer needs faster, ultimately improving the overall customer experience. 

Accuracy and Compliance 

One of IDP’s key advantages is its ability to reduce human error, a common challenge in manual data processing. By leveraging AI and machine learning (ML), Intelligent Document Processing achieves higher data accuracy, ensuring that valuable information is captured correctly the first time. This enhanced accuracy also aids in regulatory compliance, as businesses can easily maintain more accurate records and meet legal requirements. 

Why a Platform Approach to Intelligent Document Processing is the Future

While there are numerous standalone Intelligent Document Processing (IDP) solutions available, treating IDP as an isolated automation initiative is a missed opportunity. A smarter, more strategic approach is to adopt a holistic AI-powered platform where IDP is just one of many integrated capabilities. This platform-based approach, which combines Robotic Process Automation (RPA), Artificial Intelligence (AI), and data fabric technologies, enables organizations to achieve large-scale, end-to-end process automation across the entire enterprise.

AI, in particular, plays a pivotal role in enhancing IDP. For instance, platforms like Quixy incorporate AI-driven capabilities that allow users to classify and extract data from documents automatically. These advanced features empower teams to tackle critical use cases, such as document classification, email categorization, and data extraction, with unparalleled efficiency and accuracy.

Also Read: Quixy’s Document Parser Can Transform Your Document Processing in Minutes!

Why Choose a Platform Approach for IDP?

Seamless Integration

A platform approach ensures that IDP is not a standalone tool but part of a unified automation ecosystem. This integration allows for smoother workflows, better data flow between systems, and the ability to leverage other automation tools like RPA and AI in tandem with IDP.

Comprehensive Capabilities

Instead of addressing only document processing, a platform approach enables organizations to tackle broader business automation needs. From streamlining workflows to enhancing decision-making, a holistic platform provides the tools to transform entire processes, not just individual tasks.

Future-Proofing Your Business

Adopting a scalable and adaptable platform positions your organization for long-term success. As business needs evolve, a robust platform can grow with you, ensuring that your automation initiatives remain relevant and effective in the face of changing demands.

The Power of Combining AI with IDP

AI is a game-changer for IDP. When integrated into a platform, AI enhances the ability to classify, extract, and process data with minimal human intervention. For example, Quixy’s AI-powered IDP capabilities allow businesses to:

• Automatically classify documents based on content.
• Extract critical data points with high accuracy.
• Process unstructured data from emails, invoices, and contracts effortlessly.

This combination of AI and IDP not only improves speed and accuracy but also contributes to broader automation initiatives, driving efficiency across the organization.

Also Read: File Management System – Revolutionizing Document Management for Effortless Efficiency

How Intelligent Document Processing Work? 

Customized Intelligent Document Processing (IDP) solutions offer a streamlined approach to managing documents by utilizing advanced AI to extract key information efficiently.  

Here’s how it typically works: 

Step 1: Upload Documents 

Customized IDP systems supports  various types of documents, including PDFs, images, and scanned files. Upon upload, these documents are processed using Optical Character Recognition (OCR) technology, which automatically extracts the text from both digital and scanned images. This capability ensures that the system can work with diverse formats, including documents with complex layouts or large amounts of text. 

Step 2: Label Documents 

Once the documents are uploaded, users label the key data fields they wish to extract. This labeling step helps train the AI, teaching it to identify and capture specific pieces of information from each document. This process ensures that the system learns which data is most important, enhancing its ability to handle similar documents in the future. 

Step 3: Extract Data 

After the system has been trained, the AI can extract the necessary data points from the documents with a single click. This automated extraction process significantly reduces manual data entry, ensuring fast, accurate, and efficient data capture. With IDP, businesses can speed up workflows, minize errors, and make decisions process easy by using the extracted data. 

How to Choose the Right Intelligent Document Processing Software? 

Transforming your business workflows with a tailored Intelligent Document Processing (IDP) solution requires thoughtful evaluation. Here’s a step-by-step guide to help you make the right decision. 

Define Your Business Goals and Customization Needs 

Firstly, identify your business goals and how customization can help achieve them. Do you want to improve customer service, reduce manual workloads, enhance compliance, or increase operational efficiency? Determine which features or workflows need customization to align with your business priorities- touchless processing, tailored document workflows, or enhanced data management. Clearly defined expectations will help you choose a solution that delivers maximum ROI. 

Key Tip: Ask vendors about customization options for features, scalability, integration ease, and security. Ensure the solution can be tailored to evolving AI ethics and compliance regulations. 

Identify the Data You Need to Process and Customize 

Different industries handle various types of data, so your IDP solution should be customizable to manage the data your business processes. For example, banks may need loan application-specific customization, while healthcare organizations may require patient record handling. Ensure the platform can be tailored to accurately handle structured (forms and tables) and semi-structured (invoices, purchase orders) data while meeting your industry’s security and privacy requirements. 

Key Tip: Choose software that allows you to securely modify document templates and workflows to process sensitive and confidential data, especially in industries like finance or healthcare. 

Also Read: Top 7 Document Approval Software for Boosting Efficiency

Select a Platform That Meets Your Technical and Customization Requirements 

Once you understand your goals and data processing needs, focus on selecting an IDP platform with customizable technical capabilities. Ensure the platform can handle your document formats and provide options for modifying workflows, multilingual document handling, and privacy-enhancing features like authentication and encryption. Look for easy integration and flexibility in document handling to fit your existing workflows and systems. 

Key Tip: Prioritize solutions that offer extensive customization for document handling, export options, and workflow automation to adapt to your business needs while improving overall efficiency. 

What are the Use Cases of IDP Across Industries?  

1. Financial Services 

The financial sector benefits from IDP by automating invoice processing and expense management. Businesses can streamline expense report generation by extracting key data from receipts, invoices, and economic forms.  

For example, an IDP solution can extract financial data from documents and process it for upcoming payments, enabling finance teams to handle employee and contractor payments efficiently and accurately. By automating these tasks, companies should reduce the use of traditional intervention methods, saving time and reducing errors. 

2. Logistics 

In logistics, IDP simplifies the management of bills of lading, customs documents, and shipment records. Automating the extraction of critical data points from these documents accelerates processing times, ensuring smoother supply chain operations.  

For example, IDP can automatically process customs forms and shipment tracking documents, enabling logistics companies to speed up their workflows and avoid delays caused by manual data entry. 

3. Manufacturing 

Manufacturers use IDP to handle order forms, invoices, and inventory records efficiently. This automation reduces manual effort, streamlines procurement processes, and improves accuracy.  

For example, an Intelligent Document Processing solution can extract inventory data from product orders, enabling manufacturers to track inside and outside stock levels properly and ensure timely production. This reduces errors, prevents stockouts, and helps manufacturers stay on top of operational demands. 

4. Healthcare 

The healthcare sector uses IDP to manage patient records, medical forms, and insurance claims.  

For example, IDP can automate patient information extraction from medical forms, allowing healthcare providers to organize and access patient data better.  

5. Legal 

IDP helps legal firms automate extracting key information from contracts, agreements, and legal documents. By processing these documents faster and more accurately, law firms can minimize the time invested in revealing the documents manually and focus on higher-value tasks.  

For example, an IDP solution can extract critical data points such as dates, clauses, and terms from legal contracts, making it easier for legal teams to ensure compliance and prepare documents for review without delays. 

6. E-commerce 

IDP plays a pivotal role in e-commerce by automating order processing, invoice management, and customer communication. By extracting essential details from orders, invoices, and customer inquiries, e-commerce businesses can streamline back-end operations and improve customer satisfaction.  

For example, an IDP solution can automate invoice generation after an order is processed, ensuring that customers receive their invoices quickly and reducing employee administrative tasks. 

7. Insurance 

IDP automates claims processing, policy document management, and customer onboarding in the insurance industry. By extracting data from claims forms and policy documents, IDP speeds up processing times and reduces manual data entry.  

For example, an IDP solution can automatically extract claimant information from insurance forms, speed up the claims approval process, ensure more accurate outcomes, and improve customer service. 

8. Education 

Educational institutions use IDP to automate the processing of student applications, transcripts, and other academic documents. By converting paper records into digital formats and extracting key data points, IDP helps schools and universities reduce manual workloads and improve document management efficiency.  

For example, an IDP solution can automatically process student application forms, pulling in relevant details such as name, address, and academic history, making it easier for institutions to review and organize student information. 

Also Read: Business Processes you can Accelerate with Document Generation Software

The Future of Document Processing

By adopting a platform approach to IDP, organizations can move beyond the limitations of standalone solutions and embrace a future where manual document processing is a thing of the past. From enhancing operational efficiency to enabling smarter decision-making, IDP serves as a cornerstone of modern business automation.

With Quixy’s integrated platform, businesses can unlock the full potential of IDP, transforming document-heavy processes into streamlined, automated workflows. The result? Faster processing, fewer errors, and a foundation for scalable, future-ready automation.

Key Takeaways

• A platform approach to IDP ensures seamless integration with other automation tools like RPA and AI.
• Combining AI with IDP enhances accuracy, speed, and scalability.
• Investing in a holistic platform future-proofs your business, enabling you to adapt to evolving needs.

Ready to take your document processing to the next level? Explore how Quixy’s platform approach can revolutionize your workflows and drive organization-wide automation.

Choose Quixy to Build Your Document Processing and Management Solution, Tailored to Your Needs
managing documents efficiently is no longer optional—it’s essential. Whether you’re processing invoices, contracts, customer records, or compliance documents, the right solution can transform your workflows, boost productivity, and drive business growth. With Quixy, you don’t just get a tool—you get the power to build a document processing and management solution that’s perfectly tailored to your unique needs.

Quixy is a no-code platform that empowers you to create custom solutions without relying on IT or developers. Whether you’re in finance, healthcare, logistics, or any other industry, Quixy gives you the flexibility to design, automate, and scale document workflows that align with your business goals.

Why Build with Quixy?

1. Customizable to Your Business Needs
   Quixy’s no-code platform allows you to design document processing workflows that fit your specific requirements. From data extraction and classification to validation and integration, you can build a solution that works the way you do.
2. AI-Powered Automation
   Leverage Quixy’s advanced Artificial Intelligence (AI) and Machine Learning (ML) capabilities to automate repetitive tasks like data extraction, document classification, and validation. This ensures faster processing, higher accuracy, and fewer errors.
3. Seamless Integration
   Quixy integrates effortlessly with your existing systems, whether it’s ERP, CRM, or other business tools. This ensures a smooth workflow and eliminates the need for manual data transfers.
4. Scalable for Growth
   As your business grows, your document processing needs will evolve. With Quixy, you can easily scale your solution to handle higher volumes of documents without compromising on speed or accuracy.
5. Enhanced Security and Compliance
   Quixy prioritizes data security and compliance. With features like encryption, authentication, and audit trails, you can build solutions that handle sensitive information securely and meet regulatory requirements.

What Can You Build with Quixy?

With Quixy, the possibilities are endless. Here are just a few examples of what you can create:

Compliance Reporting: Create workflows to extract and organize data for audits and regulatory reporting.

Automated Invoice Processing: Extract data from invoices, validate it, and integrate it into your accounting system.

Streamlined Contract Management: Automate the extraction of key terms, dates, and clauses from contracts for faster review and compliance.

Efficient Patient Record Management: Build workflows to process and organize patient records, insurance claims, and medical forms.

Simplified Logistics Documentation: Automate the processing of bills of lading, customs forms, and shipment records.

Also Read: Beyond Bullets and Charts: Crafting Compelling Document Reports with Quixy

Conclusion

In a world where data drives decisions, Intelligent Document Processing (IDP) has emerged as a game-changer for businesses across industries. By automating the extraction, classification, and validation of data from documents, IDP eliminates manual inefficiencies, reduces errors, and accelerates workflows. Whether you’re processing invoices, managing contracts, or handling customer records, IDP empowers your business to operate smarter, faster, and more accurately.

With Quixy, you have the power to create a custom document management solution that not only organizes your documents but also integrates Intelligent Document Processing (IDP) to automate and streamline your workflows.

Quixy allows you to design and deploy a document management system tailored to your specific needs. By integrating IDP features, you can automate data extraction, classification, and validation, turning documents into actionable insights. Whether you’re handling invoices, contracts, customer records, or compliance documents, Quixy empowers you to process documents faster, with greater accuracy and efficiency.

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