AI-Enabled OCR software – Need of the hour for every business

AI-Enabled OCR software – Need of the hour for every business

ptical Character Recognition or OCR Software is a technology related to the extraction of information from documents and its conversion into searchable data. In essence, OCR allows the digitization of essential information that may be stored in handwritten documents or unsearchable PDF files or even the scanned or photographed document images.

This digitization is crucial for businesses to cut down the time needed for processing important documents. Moreover, since it obliterates the need for manual handling, the errors associated with data processing are also low.

However, there are plenty of technicalities associated with OCR technology. Thus, let’s see what OCR is all about, why businesses of the 21st century cannot run without it, and how it can be made even better for the users.

In this blog, we will go through the following points:

 

Optical Character Recognition is a technology based on the recognition of patterns of text in documents with the help of algorithms. After scanning each character of a document individually, the information present in it is converted into digital text using the software.

The software makes use of elaborate mechanisms like segmentation, classification, etc. to do so. This machine-encoded text allows the data of the primary document to become editable and searchable.

 

How OCR Software Works

The most fascinating thing about OCR is the mechanism through which it recognizes text which can be present in so many diverse forms. Fundamentally, OCR software can do this in two different ways.

In the first mechanism, the software identifies characters in their entirety, called Pattern Recognition. The second mechanism is where only specific features of each character are recognized, called Feature Detection.

 

Pattern Recognition

It is an old technique, which is prone to errors. Basically, it presumes that every individual and computer writes or prints a particular character in the same way. So, if the document contains a stored form of character, the software will read it and further processing will take place. However, if the font, size, style, etc. of the character is different from the stored information, it will not be picked up and processed.

 

Feature Detection

Feature recognition is a more sophisticated and advanced way of optical character recognition. Here, the software identifies certain features and then correlates them with the character. Every character in the document will have a set of specific characteristics, which the software can identify and instantly recognize the character through the features. So, the recognition process becomes independent of fonts or styles of printing, thereby eliminating all ambiguity at once.

For example, if the letter ‘V’ is present anywhere in a document, the Feature Recognition technology will allow the software to identify two angled lines that meet at the bottom and then recognize it as ‘V’. This recognition is therefore, independent of fonts, text sizes, etc., and hence is a more reliable method.

 

What is OCR Software Used For?

Feature recognition is a more sophisticated and advanced way of optical character recognition. Here, the software identifies certain features and then correlates them with the character. Every character in the document will have a set of specific characteristics, which the software can identify and instantly recognize the character through the features. So, the recognition process becomes independent of fonts or styles of printing, thereby eliminating all ambiguity at once.

For example, if the letter ‘V’ is present anywhere in a document, the Feature Recognition technology will allow the software to identify two angled lines that meet at the bottom and then recognize it as ‘V’. This recognition is therefore, independent of fonts, text sizes, etc., and hence is a more reliable method.

 

Bank Operations

Today, banks are using OCR software to automate data extraction and validation for processes like anti money laundering, regulatory compliance, KYC and loan approvals. Even for other routine operations like cheque clearance, optical character recognition is being used.

Hand-written cheques are simply scanned and their data is instantly processed and validated to complete payments. With this automation, banks can process and enter data into their records at a faster pace. Therefore, the waiting time for the customers is reduced drastically.

 

Legal Work

Law firms and associates have to deal with tons of documents related to their cases and clients. With OCR scanning, they are able to convert all their legal data into a digital form. Lawyers have to research and go back to their case files frequently.

This digitized data produced after OCR scanning makes all legal documents searchable. Hence, the effort that they have to put in on their forage for references is decreased significantly with OCR. This way, they can expedite case preparations, and even reduce their total expenditure.

 

Healthcare Records

Every patient that walks into a clinic or a hospital accounts for dozens of documents as well. Documents related to patient history, prescriptions, medications, etc., are of prime importance for the patients as well as the practitioners. For healthcare agencies and hospitals, OCR software is beneficial for converting every handwritten prescription and medical record into a digital form.

This way, medical details become searchable. So, the doctor or an insurance company can easily search for past records and correlate them clinically. Besides patient records, the medical insurance papers, monthly equipment and drug purchase documents, and several other files can also be processed more efficiently with OCR.

 

What is the Best OCR Software?

The best OCR software is the one that can support the changing work environments and duties in every sector. Primarily, a good OCR software should have impeccable performance, when it comes to basic aspects like scanning and conversion of data into digital text.

However, the integration of machine learning and AI into OCR technology has allowed the simple OCR software to perform many other important functions. Now, the OCR software is not just limited to scanning and conversion, but it is also helpful in error corrections and layout analysis.

So, when it comes to the best OCR software, it has to be the one that is enriched with modern AI and Deep Learning capabilities.

 

How AI-enabled OCR Software Is Different

AI-enabled OCR can plug the three major loopholes in conventional OCR technology very easily. Firstly, simple OCR does not account for error correction in the converted data. Secondly, it does not have the self-learning abilities to handle complex information. Thirdly, unless documents are presented before it in a templatized manner, it cannot interpret the meaning of the text properly. Most of these issues are present in Free OCR Software.

All these three shortcomings of conventional OCR can be managed only through AI integration. Artificial Intelligence allows OCR software to work effectively on unstructured or semi-structured documents. It allows it to identify and represent complex data like figures, graphs, etc., more accurately. Most importantly, AI makes the software capable of omitting errors and proofreading the data too.

 

The “KlearStack Way” of Extracting Data

KlearStack is one of the leading OCR software development companies in the market today. Our AI-backed OCR solutions are capable of streamlining business operations and increasing productivity. KlearStack’s OCR software provides a highly accurate data extraction experience. The self-learning capabilities of the software help in error elimination and data validation as well.

Based on advanced machine learning strategies, our OCR software does not depend on formats or templates to execute accurate data extraction. The software is capable of processing any PDF/ image with inconsistent orientations and produces a digital copy with complete contextual preservation.

KlearStack AI leverages technologies such as Natural Language Processing, Computer Vision and Heuristics that helps to identify, capture and interpret data from documents as a human would do it. This makes data extraction highly accurate, even from unseen documents.

Let us show you how our AI-Bases OCR solutions handle all data processing challenges. Contact us right away, and book a KlearStack OCR demo today.

Ashutosh Saitwal
Ashutosh Saitwal
www.klearstack.com/

Ashutosh is the founder and director of the award winning KlearStack AI platform. You can catch him speaking at NASSCOM events around the world where he speaks and is an evangelist for RPA, AI, Machine Learning and Intelligent Document Processing.