Let’s face it - paper-based workflows and manual document handling slow down your business. That’s where Intelligent Document Processing (IDP) steps in.
In a nutshell, IDP is a combination of AI technologies, specifically:
OCR stands for Optical Character Recognition. NLP stands for Natural Language Processing. Machine learning is used to automatically extract, classify, and validate data from a wide range of document types, including invoices, contracts, scanned PDFs, emails, forms, and even handwritten notes.
In essence, it turns unstructured or semi-structured data into usable, structured information, making it actionable for your systems. You may not be inundated with millions of documents like larger enterprises. Still, even a moderate document load can drain productivity, lead to manual errors, and slow down processes such as invoicing, HR onboarding, or contract reviews. IDP helps you scale efficiently without increasing headcount. Think of IDP as your AI-powered digital employee - it works 24/7, doesn’t make copy-paste mistakes, and integrates into your existing workflows.
Summarizing and interpreting a bunch of inbound content
When you're dealing with lengthy contracts, reports, scanned PDFs, or just a pile of unreadable documents, IDP can step in. It generates concise summaries, extracts deadlines, highlights risks, and can even detect tone or sentiment. You don’t need to read it all - the AI does that for you, across documents of all kinds: invoices, forms, customs declarations, you name it. Faster insight, less overwhelm.
Auto-generating co-related follow-up docs or bundles
Once the data is extracted, IDP doesn’t stop - it helps generate follow-up documents automatically. Think: email responses, order confirmations, contract appendices, or compliance notices, all based on the content of the original file. It’s end-to-end automation, not just data scraping.
Document proofreading and cross-validation
IDP can verify consistency across related documents by cross-checking key parameters:
- Do invoice totals match the purchase order?
- Does the contract follow your legal template?
- Are dates and reference numbers aligned?
Every document is part of a bigger puzzle - IDP puts it together and spots the gaps.
Bulk digitization and intelligent classification
No more blind archives. IDP can bulk-process entire folders, classify documents by type or content, tag them with metadata, and organize them into searchable archives. You can even connect these digital archives to AI assistants or knowledge bases to make company memory instantly accessible. Legacy folders may become living knowledge.
Extracting information from handwritten or scanned documents
Notably, at the core of any serious IDP solution is modern, AI-powered OCR (Optical Character Recognition). It handles noisy scans, rotated documents, and moreover handwritten text in many languages. For mid-sized businesses, OCR serves as the bridge, transforming documents into data and data into actionable insights.
Being part of a bigger workflow
With the IDP solution connected to your workflows, actions can occur the moment a document is processed, such as updating a CRM, sending an alert, creating a task for a subordinate, or notifying a colleague via email. This transforms incoming or processed documents into living process triggers, helping your business move faster and achieve better results.
How does it work in practice?
Let’s demystify what Intelligent Document Processing looks like in real life - no jargon, no black boxes. Below is a transparent, step-by-step walkthrough of a typical IDP flow, using a common example such as an incoming invoice.
Step 1: The document arrives
Documents can come from anywhere - a scanned paper invoice, a PDF attached to an email, an upload from a web form, or even a document retrieved from a public portal (via API). The IDP system ingests the file and prepares it for analysis.
Step 2: Pre-processing & OCR
The system begins by cleaning the document, adjusting the alignment, removing background noise, and sharpening the image if necessary. Then it applies Optical Character Recognition (OCR) to read the text, converting images or scans into machine-readable text.
Step 3: Understanding what kind of document it is
Before extracting any data, the IDP solution must understand what it’s looking at. Is this an invoice? A contract? A shipping document? It utilizes AI to classify documents based on layout, language, keywords, and structure, even when filenames or templates are not helpful.
Step 4: Extracting key information
Once the document type is identified, the system begins extracting key fields, such as the invoice number, date, supplier name, line items, tax rates, or total amount. It’s not looking for exact positions - it looks for patterns, context, and meaning.
Step 5: Validating and verifying
Before passing the data along, the system runs validation rules. For example:
- Is the total sum correct based on the line items?
- Is this a duplicate of an invoice you have already received?
- Does the supplier ID match what's in your database?
These rules can be pre-configured and extended over time, adding a layer of checks and fraud prevention.
Step 6: Integrating with your systems
Once the document is processed and the data is verified, it gets sent exactly where it needs to go: into your ERP, CRM, accounting system, cloud storage, or task management tool. You can also use it to trigger workflows, like approvals or status changes.
In some cases, for high-risk documents or when confidence is low, the system may request a quick human review. These interfaces are typically straightforward and efficient: verify or correct a field and proceed.
How can we assist your company?
At Covent IT, we help mid-sized businesses implement practical and affordable IDP solutions with a fast return on investment (ROI).
We can help you:
- Analyze your document workflows to uncover automation opportunities
- Build custom AI pipelines using open-source or cloud tools
- Integrate IDP with your existing systems, including ERP, CRM, SharePoint, cloud storage, corporate messengers, and more
- Implement RAG-based knowledge assistants to query your digitized documents using natural language
- Configure and support the technical infrastructure - from workflow engines to databases and cloud environments
We focus on cost-efficiency, privacy, and low-friction integration, so you don’t need an army of consultants or a six-figure budget to get started.
Ready to see IDP in action?
If you’re still spending hours manually handling documents - invoices, contracts, reports - it’s time to explore a more innovative way.
Let us show you how Intelligent Document Processing can simplify your workflows, reduce errors, and save hundreds of hours a year.
👉 Book a free consultation or live demo.
We’ll review your use case and show you exactly how automation can fit into your business.
