OCR vs AI-powered Document Processing – What’s the Difference? 

Do you struggle every day to find specific information in a mountain of paperwork? 

Now, you want to decide which technology can best help you streamline this process: Traditional OCR (Optical Character Recognition) or advanced AI-powered document processing? 

Don’t worry; this blog will help you clarify all your doubts and choose the right solution for your business needs in the OCR vs IDP debate. 

However, before we begin, you must understand that both technologies have different use cases and strengths. Let’s first discuss each technology to better understand it. 

What is Optical Character Recognition?

OCR technology has the ability to convert various documents types, such as scanned paper documents, PDFs, or images, into editable and searchable data.

Key Features of OCR

  • Converts printed text into machine-readable digital text
  • Analyzes the shapes of letters and numbers in scanned images
  • Makes documents easier to store and manage compactly
  • Useful for basic text extraction from physical documents

Also, OCR data entry is highly accurate, with top OCR software offering an accuracy rate of up to 99.5%, significantly reducing errors compared to manual data entry.

OCR Advantages and Disadvantages

What is AI-powered Document Processing?

It is an advanced technology that uses artificial intelligence (AI) to automate the extraction, interpretation, and processing of data from documents. Therefore, it is also known as intelligent document processing (IDP), which goes beyond traditional printing and understands the context and meaning of the information within the documents.
Key Features of IDP

  • Handles complex documents with unstructured data, such as invoices, contracts, and emails
  • Recognizes patterns and extracts relevant information
  • Categorizes documents and validates data
  • Integrates seamlessly with other business processes

IDP Advantages and Disadvantages

OCR vs IDP Difference

In this section, we will compare OCR and IDP based on certain factors. Comparing both technologies will help you clarify your doubts and make the right decision.

OCR vs Intelligent Document Processing Solutions: Winner for You?

The major differences between the two technologies are their functionalities, applications, and use cases. Hence, the winner for your business would completely depend on its specific requirements.

For example: If your business primarily deals with digitizing large volumes of printed text such as books, forms, and simple documents, OCR would be a suitable choice.

On the other hand, if your business needs to process complex documents like invoices, contracts, and emails, which often contain unstructured data, IDP is the better option.

Docketry: The Best Intelligent Document Processing Software

Now the question arises: which intelligent document processing solution should you choose based on your specific requirements?

With an abundance of IDP solutions available in the market, it must be daunting to choose the perfect one. Let’s discuss this in detail.

Why Docketry?

Unlike traditional OCR, Docketry leverages advanced AI and ML algorithms to understand, extract, and process data from complex documents. No doubt, Docketry stands out as the best document automation software due to its precision and efficiency.

Docketry requires minimal setup, allowing quick and seamless integration into existing systems. Docketry is also cost-efficient, making it ideal for businesses looking to optimize their workflows, enhance accuracy, and reduce manual intervention.

Key Features of Docketry

  • Template-free processing for diverse document types
  • Real-time analytics to minimize errors and manual intervention
  • Flexible deployment options: cloud, on-premises, or fully managed SaaS
  • Error-free processing with field-based confidence scores and manual verification options
  • Sentiment analysis to understand emotions behind texts
  • Document summarization for key information extraction
  • Fraud detection with advanced analytics and validation rules

With 7x faster document processing, 95% accuracy, 60% cost savings, and 80% error reduction, Docketry is the right intelligent document processing solution for you.


Reading this blog must have given you an idea of how both OCR and AI-powered document processing have their unique strengths and use cases. Therefore, the choice between the two depends on your business needs.

OCR is ideal for simple digitization tasks, whereas AI-powered IDP offers advanced capabilities for handling complex, unstructured data and automating intricate workflows.

If you are ready to elevate your document processing, connect with us today to see how Docketry can offer unparalleled accuracy and efficiency in managing diverse document types.

Leverage the full potential of AI-driven document processing with Docketry.