What Are the Benefits of Using AI for Document Scanning and Data Extraction?

Businesses today are creating and managing more data than ever. They deal with invoices, receipts, contracts, HR records, and compliance documents. Traditionally, this has been a manual or partly automated task, which takes a lot of time and resources that can sometimes leave people feeling overwhelmed with the amount of information that must be processed, stored, and examined.

Artificial intelligence (AI) has changed that. With AI data extraction tools and AI tools for document processing, businesses can now digitize and quickly get key information from documents. This technology not only speeds things up but also improves accuracy, lowers costs, and allows staff to focus on more important tasks.

In this blog, we look at the benefits of using AI for document scanning and data extraction. We will review some of the best AI data extraction tools. With insights from our experts, we explain how these tools work and highlight the key features you should consider when choosing one for your organization.

Why Use AI for Document Scanning and Data Extraction?

AI-powered document scanning isn’t just turning paper into digital files. It utilizes a combination of machine learning, optical character recognition (OCR), and natural language processing (NLP) to read documents, comprehend their context, and extract the most crucial information.

As Liz Carten, Executive Director at Consentia, explains, “We are hearing a lot more requests for data extraction options when discussing a project with a potential client. AI is allowing businesses to use the data they have captured through digitization to provide greater insights and access to the information.”

The shift highlights how organizations are moving beyond basic digitization toward solutions that make their data more useful and actionable. Here are some key benefits AI tools for document processing offer businesses:

Improved Accuracy

Manual data entry can be more prone to mistakes when handling a large volume of invoices or forms. AI data extraction tools reduce human errors by utilizing algorithms that reliably recognize patterns, correct formatting, and identify anomalies. As our Executive Director explains:

“To make errors is human. Even your top-performing team members will make mistakes, it’s just reality. AI mitigates this risk, so the margin of error is in the hundredths of a percentage. Manual verification shifts focus to only problem areas, which also saves labour costs.”

Time and Cost Savings

AI systems process documents quickly, which reduces the need for manual work. Tasks that take hours or days can now be done in minutes. This efficiency leads to direct cost savings.

Scalability

Whether your organization processes a few hundred documents each month or millions every year, AI tools for document handling can scale to meet your needs. This scalability is especially important during busy seasons or periods of rapid growth, when manual processing can slow down operations.

As Liz Carten, Executive Director at Consentia, explains, “We have seen fantastic advances in AI software capabilities in the past 3–4 years. I would anticipate that machine learning will continue to evolve, with more accurate capture of handwriting.

As well, more and more tools for the extraction of specific documents are created.” These ongoing advancements mean that businesses can handle larger volumes of data more efficiently while maintaining accuracy, freeing teams to focus on higher-value tasks.

Enhanced Compliance and Security

Many industries, like finance, healthcare, and legal services, have strict data handling regulations. AI solutions can automatically classify sensitive information, apply redactions, and ensure proper access controls. This reduces potential compliance risks.

Better Data Insights

Instead of simply storing scanned files, AI pulls structured data that can be used in analytics platforms. This helps businesses gain insights, spot trends, and make smarter decisions based on real-time information.

What Are the Best AI Tools for Data Extraction?

The market for AI data extraction tools continues to grow, with new features and integrations showing up every year. Here are some of the top AI data extraction tools available:

1. ABBYY Vantage (Consentia’s Preferred Platform)

A leader in OCR technology, ABBYY has developed into a complete AI-driven platform for intelligent document processing. ABBYY Vantage offers pre-trained skills for invoice processing, identity verification, and more, and it has a strong reputation for accuracy.

At Consentia, we use ABBYY as our main platform for data extraction because it balances flexibility, scalability, and reliability, making it a trusted solution for even the most complex digitization projects. As our Executive Director, Liz Carten, explains:

“There were two main reasons why we selected ABBYY as our primary platform. ABBYY is highly customizable, allowing us to create solutions that meet an individual client’s needs. For example, one project we have extracts data from borehole logs. These are graphs and charts with loads of information on them that aren’t in a traditional table format. ABBYY is able to measure the graphs to compile the required data.”

Security was another deciding factor. Liz adds:

“The other main reason was that ABBYY can be hosted internally on our secure server and network, not requiring access to the cloud. A number of our clients have extremely sensitive data and the security of their information is critical. Consentia is able to offer the utmost security while utilizing emerging technology.”

If your organization is exploring ways to streamline document workflows or enhance data accuracy, our team of digitization experts can help. Reach out to learn how ABBYY-powered automation can improve efficiency, reduce manual work, and give your team more control over critical business information.

2. UiPath Document Understanding

UiPath combines robotic process automation (RPA) with AI-based document processing. It can classify documents and extract data using machine learning models. It also integrates with workflows, making it a good option for people who are looking for complete automation.

3. Amazon Textract

Amazon Textract is a cloud service that uses AI to extract text, handwriting, and data from scanned documents. It is especially effective for structured forms and tables, making it a popular choice for financial and administrative tasks.

4. Microsoft Azure Form Recognizer

Part of Microsoft’s Cognitive Services, this tool uses AI to extract text, key-value pairs, and tables. It works well for businesses already using Microsoft products. It offers easy integration with Power Automate and Power BI.

5. Google Document AI

This solution uses deep learning to extract information from unstructured data, including invoices and contracts. Its pre-trained models and ability to scale make it a great option for organizations that handle large amounts of different documents.

6. Hyperscience

Focused on intelligent document processing, Hyperscience combines AI with human review where necessary. This hybrid approach ensures very high accuracy for critical workflows, such as insurance claims and government records.

Each of these AI tools for document processing has unique strengths, but at Consentia, we’ve found ABBYY to be especially powerful for delivering accurate, scalable, and customizable results to our clients.

How Do AI Tools Help with Data Extraction?

To fully understand the benefits, let’s take a closer look at how these tools function.

Digitization with OCR: Documents are scanned and turned into machine-readable text using optical character recognition. Modern OCR with AI capabilities goes beyond basic text recognition. It can handle handwriting, multiple languages, and low-quality scans.

Classification and Categorization: AI models can identify the type of document being processed, such as an invoice, contract, ID, or receipt, and route it accordingly.

Entity and Field Extraction: Using natural language processing, AI data extraction tools locate specific fields, like names, dates, amounts, or account numbers, and pull them into structured formats such as spreadsheets or databases.

Validation and Error Checking: AI systems can cross-check extracted data against known patterns (e.g., a 9-digit social insurance number) to validate accuracy.

Integration into Workflows: Once extracted, data can be automatically pushed into ERP systems, CRMs, or other business applications. This reduces the need for manual re-entry.

This type of automation is what makes AI tools for document processing so valuable. They don’t just digitize documents; they make the data usable.

What Features Should I Look for in an AI Data Extraction Tool?

Not all AI data extraction tools are created equal, and selecting the right solution can make a significant difference in efficiency, accuracy, and overall business outcomes. When evaluating AI platforms, companies should look beyond flashy features and focus on tools that align with their document types, workflows, and security requirements. High-performing AI can save time, reduce errors, and free staff to focus on higher-value tasks, but only if the tool is the right fit for the organization’s needs.

“We previously partnered with an organization to assist with their accounts payable invoices. Initially, employees would have to complete data entry of all the information on the invoice, date, amount, name, etc. This was extremely time-consuming and prone to error.” Lis explains. “By engaging our extraction service, we were able to complete that process with a 99.99% accuracy rate, saving the organization 90% of the cost of that task. They were able to then deploy those resources to more high-value tasks, which also improved the employee experience.”

With that in mind, here are some key features businesses should consider when choosing AI data extraction tools:

Accuracy and Reliability: Look for tools that have proven accuracy rates, especially for your specific document types. Some solutions work better with structured forms, while others do well with unstructured documents like contracts.

Customizable Models: Pre-trained models are helpful, but your business might have unique document formats. The best AI data extraction tools let you train custom models to recognize your specific data fields.

Integration Capabilities: Make sure the tool integrates easily with your current systems, such as ERP, CRM, accounting software, or data warehouses. Good API support is essential.

Security and Compliance Features: If you work in a regulated industry, make sure the tool provides encryption, access controls, and compliance certifications, such as HIPAA or GDPR.

Scalability and Performance: The solution you select should manage both your current workloads and future growth. Cloud-based options usually offer the flexibility required for scaling up.

Ease of Use: User-friendly interfaces, clear reporting, and simple workflows help your team adopt the tools more easily.

Hybrid Human-in-the-Loop Options: For sensitive or complex documents, some organizations prefer tools that let humans review alongside AI. This ensures maximum accuracy while keeping efficiency.

The Future of AI in Document Processing

As AI continues to improve, we can expect AI tools for document processing to become smarter, faster, and more versatile. What started as simple OCR technology is evolving into systems that understand context, interpret meaning, and provide insights in ways that were once unimaginable.

Many people assume these tools work instantly out of the box, but the reality is far more complex. As our Executive Director, Liz Carten, explains. “The process of how projects are set up and the inner workings of these platforms is something not generally talked about. We all know that when we open a platform like ChatGPT, we can type something in and it spits out an answer. All of the work that went on to get it to that point is invisible.”

This misconception is especially common when it comes to AI in document scanning. While modern platforms seem seamless from the outside, what makes them powerful is the extensive training that happens behind the scenes. Liz adds, “Machine learning trains the system to recognize specific details, but that means we need to train the system. This usually involves thousands of data points, samples, and a lot of labour hours.”

Advances in large language models, for instance, help AI not only recognize words but also understand intent, tone, and the connections between data points. This makes it much easier to pull meaningful information from unstructured sources like contracts, reports, or handwritten notes. That said, customization still takes time and expertise. “While some ‘plug and play’ offerings are out there, anything requiring customization will take time.”

In the near future, we’re likely to see AI-powered tools that do more than just extract and process information. They may offer predictive insights and proactive suggestions based on the documents a business uses. Picture software that scans an invoice and highlights unusual spending patterns, or a tool that reviews contracts and points out clauses that could lead to compliance issues.

As these systems improve, they will increasingly turn raw information into actionable intelligence, transforming document processing from a back-office task into a key driver of smarter decision-making across organizations.

The best AI data extraction tools in 2024, like UiPath, Amazon Textract, Google Document AI, and ABBYY Vantage, give businesses plenty of options to fit their specific needs. By focusing on accuracy, integration, scalability, and compliance, you can choose the right solution to make your document workflows more efficient and reliable.

Ultimately, AI tools for document processing do more than just digitize paper; they make your data smarter, more usable, and more valuable (learn more about the potential of AI-powered innovation in document scanning and capture here). For anyone looking to explore how AI can work for their organization, our Executive Director at Consentia offers this advice:

“Ask detailed questions and share as much information as possible. At Consentia, we’re always exploring the latest AI tools and approaches to make sure we find the best solution for each client. Together, we can implement strategies that deliver real value and help their data work smarter.” If your business is considering AI for document scanning or data extraction, contact us, and one of our experts will walk you through the process and ensure you choose the right solution and get the most value from your data.