What is OCR data extraction

OCR Technology – Beneficial For Automating Data Extraction

Businesses deal with bundles of paperwork every day over various industries, varying from the financial industry to manufacturing. Now, businesses are wasting millions of dollars each year to manually process the information available. Nevertheless, manual methods have shortcomings such as escalated costs, inevitable human errors, and wastage of time. However, the primary problem is that these documents are PDFs, images, or printed copies that warrant data to be fed manually into the system. Consequently, preparing such documents and then obtaining the appropriate data is a nuisance. Therefore, the demand of the moment is an innovative technology that aids industries in all specific processes. 

OCR Technology services are mesmerizing whether you need them for auto data extraction from a published receipt or to interpret a foreign language. What is OCR data extraction ?

How can OCR Services Provide Easy Data Extraction? 

Online businesses strive to present the most high-grade services possible using the latest OCR solution with technological progress. The manual data listing and documentation method have been recognized for taking a long time and hiring an extra workforce. Nonetheless, OCR services have displayed these methods more comfortable by automating data extraction. AI machine learning can process data more precisely than humanly imaginable. OCR services help to reduce errors at a major level while it diminishes the use of multiple hardware devices to scan documents. 

Nowadays, phone apps can readily extract text from mobile OCR apps which lessens the time and effort initially used. 

The Process of OCR Technology

Various service providers have several techniques that use OCR solutions, but the fundamental theory is customarily alike. Extracting data through artificial intelligence is by scanning, extracting, and processing the data. Those techniques have allowed PDF documents and printed documents to be transformed into rich text format. 

Furthermore, character recognition applications have facilitated more lasting and more dynamic data extraction. They have further enabled users to transform text on blur images to appear more visible than the primary picture. 

The process of the backend makes sure that the white spaces of the text are separated from the actual text and saves it in the backend. The characters are later arranged into words and subsequently into sentences. The application looks at surrounding words if the application cannot understand a text for the best fit. Nevertheless, if OCR is still incapable of detecting the text, ICR technology jumps in to save the day. ICR technology is intended to analyze cursive handwriting using high-level technology. 

AI in OCR services 

Although OCR services can detect and extract text, the establishment of artificial intelligence presents further accuracy. The blend of AI and NLP supports OCR services in identity verification. 

Companies utilize OCR document scanners to lower operating costs and tool utilization. Meanwhile, data entry processes do not require hiring a human workforce, as AI is steadily studying and ‘knows’ which information to be extracted and where it must be saved.


Data extraction of the scanned picture involves processes prior to functions such as controlling the brightness and the contrast. These purposes are advantageous for enhancing the readability of the text by diminishing distortion.

Extraction of Data

After clarifying the image, OCR services discriminate among the various characters and recognize text blocks, lines, and paragraphs.


AI ML algorithms facilitate the intelligent recognition of styles, sizes, and resolutions of the document presented in the post-processing stage.

Numerous Document Formats

It is likely to extract data from a mixture of distinct kinds of documents using OCR services, including:

Structured documents

These are records that are produced from already defined templates. For example, structured papers contain extremely few formatting and spacing errors, such as documents issued by governments or utility bills and credit and debit card receipts. Although consequently, the AI-based system is formed with already built templates, OCR services facilitate effective data extraction from structured documents.

Semi-Structured Documents

Semi-structured documents have similar properties to structured documents, for example, extracting information quickly. Nonetheless, certain records are not pre-formatted, such as grocery invoices or purchase orders, hence challenging to extract but not for OCR services.  

Documents that are not Structured

Unstructured documents do not have a set template and vary in context; They are not easily understandable. Semi and un-structured documents are separated by the uniformity of the OCR services

Legal documents vary in the form of context and hence are Unstructured papers. In any event, OCR technologies can retrieve data from unstructured documents and present the effectiveness of the data input method.

Final Remarks

To compile, optical character recognition (OCR) solutions are a significant aspect of the technological reconstruction led in by AI. Constant advancements in technology aid businesses with added evolution for efficiency and precision. Thus, OCR services have served in robustly automating the document verification process. 

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