AI OCR is what? How AI convert scan files to digital data

AI OCR (Optical Character Recognition application artificial intelligence) appears as a solution to help businesses solve radical problems on: automatically convert images, PDF scan or paper documents into digital data that can search for, edit, and integrated into the management system. This technology is a revolutionary platform that helps businesses step through the stage of “transferring data from paper to digital,” capital is money important issue to deploy the project digitization, automation, process or data analysis.

This article Lac Viet Computing provide perspective depth but is still easy to learn about AI, OCR, help the organizations and enterprises are to find out information about SOMEONE OCR understand the concept, mechanism of action, precision and conditions to effective implementation in practice.

1. AI OCR is what?

AI OCR (Artificial Intelligence Optical Character Recognition) is the technology recognizes and converts the contents in images or scan documents into digital data that can search for, edit, then put into the management system.

Other than OCR tradition merely “reading character”, AI OCR is adding more models artificial intelligence such as deep learning (deep learning), processing natural language (NLP). Thanks to that, this technology not only recognize the word but also understand the context, document classification, dissection, school information, standardized data in the correct structure business.

For example easy to understand: A labor contract has many items such as name, job title, salary, allowances... OCR traditional just “read” but AI OCR can “understand document structure” to automatically dissection correct each market information to put into hr software.

AI OCR has the ability to handle multiple documents that enterprises often encounter:

• Photos taken with the phone (tilt, matte, shine).
• Document scan multiple pages.
• Invoices, contracts, forms the complex.
• Paper identification, testimony from handwriting.

Thanks to the application AI, the accuracy of the identification process of significantly higher with special materials, non-standard material is deformed or have the layout is not fixed. This helps businesses to shorten the time data entry, reduce human error, create source data to put into the system administrator.

In other words, AI OCR is the recognition, which is a solution that automates the process of handling comprehensive documentation in accordance with the organizations and enterprises are to find out information about SOMEONE OCR to upgrade the capacity of digestion and optimal operation.

2. ONE other OCR nothing compared to Scan OCR usual?

2.1. OCR tradition: many inherent limitations

OCR is usually recognition technology, basic character, usually only works well with clear documentation and standard print. The restrictions include:

• Only “see” the character, not understanding the structural material.
• 't distinguish data field (for example: where is the date of birth, where is the number of contracts).
• Easy wrong when handwriting, blur photo, the document is skewed, tilted.
• Not capable of self-learning, so accuracy does not improve over time.

So, when a business only scan using OCR often, still have to enter the data.

2.2. AI OCR: smart and “understand” the context document

AI OCR excels by combining the new technology:

• Computer Vision: recognize the text, including font is smudging or paper is folded.
• NLP (Natural Language Processing): understand the meaning market data based on context, for example: their distinguished name – address – tax code.
• Machine Learning: the use of multiple systems as accurately as possible.

For example, with an ID/CCCD, AI OCR not only read the text of which still defines:

• Where is the identifier number.
• Where is the issue date.
• Where is their name.
• Where is permanent place of residence.

Help business reduce the power stage input, checks, collated manually.

3. The mechanism of action of AI OCR in data conversion of

AI OCR operation is based on the combination of three main technologies:

1. Money image processing (Image Preprocessing)
2. Get area – disaggregated information (Document Understanding)
3. Standardized and returns the data (Structured Data Output)

Here are details, step by step, how it is applied in the banking sector.

Step 1. Reception of documents – sync all formats from multiple sources

In banking, data input can come from:

• Open record account (ID/CCCD, book, certificate of income).
• Profile credit loan (contract labor, star, statistics, loan contract old).
• Snapshot transaction at the counter.
• Customer documents sent online via app banking.

AI OCR allows for receiving PDF scan, photo taken by phone, the document is tilted, matte, backlight, help to significantly reduce the volume of documents is returned as before.

Step 2. Pre-processing image – clean, clarified to ensure recognition accuracy

This stage is extremely important, especially in banking, where papers guests bring often blur, old, broken corners or snapshot with your phone.

AI OCR will:

• Automatically rotate the image on the right way.
• Noise reduction – increase the definition makes text easier to read.
• Calibration for brightness – contrast to improve the ability to identify characters.
• Detect and cut the text, remove the edging excess seals, spill the edge.

The result is photo inputs are “clean” and standardized before putting on the identification.

Practical examples in banking: When customers take photos CCCD to open the account online, the photo is often ball lamp glare. AI OCR automatically analyze pixels, glare reduction, clarification re the letter before putting into the system.

Step 3. Identification, dissection data – AI “understands” the structure of bank records

Step 4. Standardized data – Create data properly clean standard bank

AI will automatically standardize the data before putting into the system:

• Shipping date about standard bank (dd/mm/yyyy).
• Cleaning amount (type a comma, sign VND).
• For the CCCD according to the standard structure to reduce errors.
• Standardized name uppercase beginning of the line or by the name standard.

This helps the data is homogeneous, ready to push into Core Banking, LOS, CRM or system eKYC.

Step 5. Returns numeric data – direct connection with the banking system

Data after being AI OCR analysis will be returned as:

• JSON
• Excel
• API push directly into the system to open accounts or browser loans

From this, banks can automate the entire process, no need to enter manually.

4. App AI OCR according to each professional in the business

AI OCR is not merely a tool of recognition, which is a solution to convert numbers to help businesses handle material fast, standardized data and a sharp reduction in the volume of input manually.

Below is the group of professional business application AI OCR the most current.

4.1. Identify, digitize personnel records

In the field of hr, the number of form paper extremely large: candidate profile, ID/CCCD, windows, insurance, contract of employment, votes, reviews... When entering data manually, business prone to overload, flaws, and take a lot of time cross-checking.

AI OCR solve this problem in three directions main values:

• Shorten processing time record. A business recruit 500 applicants each month usually need several staff to enter the profile. AI OCR can automatically identify information from the ID/CCCD, candidate profile or PDF scan and pushed into the system, ATS/HRM in just a few seconds.
• Reduce errors information: Instead of the worker to enter data manually, line by line, AI OCR to extract the exact data fields such as name, date of birth, id code, address... help data HR sync right from the start.
• Platform for process HR digitized comprehensive: After the data is transferred into digital format, businesses can immediately connect to the recruitment process, timekeeping, payroll, record keeping without handle manually.

4.2. Digitized invoices – accounting vouchers

This field is strongest application of AI OCR, particularly in the enterprise with the amount of VAT invoices, vouchers and financial.

AI OCR help business:

• Automation dissection invoice data: AI OCR can recognize the school as the tax code, the invoice date, amount, VAT, suppliers... and automatically pushed to accounting software or ERP.
• Reduce the time accounting: According to the survey of APQC (American Productivity & Quality Center), the business uses OCR technology can reduce 50-70% of the time processing a bill than entering data manually.
• Limit the risk of errors and fraud: AI OCR is not read-only invoices, but also have the ability to check for duplicate comparison information between the vouchers help accounting limit errors in accounting.

4.3. Digitization of legal documents – contracts

Contract partner, transaction records, test records obtained... usually in the form of PDF scans or paper storage. The search, collate information becomes difficult to take time.

AI OCR bring obvious benefits:

• Extract information contract according to market data: partner Name, contract term, value, payment terms... be WHO dissection automatically to save to a management system contract.
• Easy to search, lookup: Instead of open each PDF file and read crafts, users only need to enter the keyword, the system will return the correct document contains the content you are looking for.
• Optimal storage, legal compliance: When the whole contract has been digitized and businesses to easily deploy approval process, automatic tracking the life cycle contract to ensure transparency.

4.4. Application in Bank – Finance

The financial sector – banks handle large amount of papers identified, the stock from the credit profile and loan capital every day. So, WHO OCR become key technologies in the project to digitize operation.

AI OCR bring:

• Identification papers: CCCD, Passport, papers, driving... is ANYONE OCR dissection information automatically to open the account identifier customer (KYC).
• Processing loan documents, vouchers credit: AI automatically identifies statements, contracts, credit, payroll certificate of earnings... for operation enter the data manually.
• Accelerated approval process: According to a report by McKinsey, automation of imported materials in credit operations can shorten 30-50% of the time approval profile.

4.5. Process record storage – vouchers at the business

For businesses that are digitized paper documents, AI OCR's role as the intermediate step is extremely important between the scan and store into the system, DMS (Document Management System).

• Standardize data before storing: After the staff scan the document, WHO OCR will image processing, recognition, data disaggregated information, standardized format.
• Automatically assign labels material: SOMEONE help sorting by folder: contracts, accounting documents, personnel records... support, quick search, data synchronization.
• Increased availability of data: When all the information is digitized and standardized, enterprises can deploy workflow automation, reporting, intelligent or integrated with the ERP – HRM – CRM.

5. Selection guide solution AI OCR for business

The choice of solution AI OCR suits can directly affect the conversion efficiency of the business. A tool has low accuracy or difficult integration will make business spending extra operating costs, not even able to deploy automation really. So, here are 5 important criteria that organizations, businesses should consider before investing.

5.1. Accuracy and the ability to identify in real conditions

In an enterprise environment, the document is not always in the form of beautiful clarity. Records may be creased, invoices can be blurred photo is tilted or light. So, the most important criterion is the actual accuracy (real-world accuracy), not only is the indicator ideal in a lab.

A solution AI OCR good need to ensure:

• Recognize the handwriting popular (for example: form suggestions, notes inventory).
• Image processing is the deflection angle, blurry, or have the ball.
• Automatically clean the image before recognition (image preprocessing).

According to the report of Google Cloud Document AIthe pattern AI OCR modern can achieve accuracy above 98% with high-quality material, and maintain the level of 90-95% with document capture using the phone in low light conditions.

For businesses, this number is the decision directly to the time control data, the cost of personnel to operate.

5.2. Support English, diverse document formats

Not the solution OCR international also understand English, especially the seal bar. Errors only 1 character can also distort the tax code, card ID number/CCCD or data contract. So, businesses need to prioritize the tool:

• Full support for accented Vietnamese.
• Get the best look for your own name, address, identifier, which is the form of documents or meet in HR and accounting.
• Handles many formats: PDF, PNG, JPG, TIFF, scan documents, photos.
• Support popular templates: VAT invoices, contracts, personnel records, accounting...

This is especially important with the business is to find out information about SOMEONE OCR in the context of the number of paper documents still account for a large proportion in Vietnam.

5.3. The ability to integrate API with HRM, ERP, Workflow, CRM

The ability to integrate decide WHO OCR can really bring effective automation or not.

Solutions only allow to download files up to read, but not connected with system, HRM, ERP or accounting software, the enterprise still need to enter data manually in part, that process is interrupted.

An AI system OCR good need:

• Have the API clearly, technical documentation, complete, easy to connection with the software hr (HRM), finance and accounting, CRM or workflow automatically.
• Allows for custom workflow: automatic reading – test – push data to the source system.
• Support storage, processing history to serve internal test.

5.4. The ability to customize according to its own form of business

In Vietnam, every business has presentation template different materials:

• Contract template internal.
• Template reviews.
• Payroll, payslip format separately.
• Form ID/CCCD many versions (barcode, chip...).

Therefore, the ability to customize the pattern AI OCR as each form is the determining factor for data to be disaggregated accurate.

This feature helps:

• To limit errors when the form has a special structure.
• Shorten the duration of the data entry for the document to be used every day.
• Businesses can scale up to handle that does not depend on the technical team.

This is also the point that SOMEONE OCR different than OCR traditional – capital only read good samples have fixed structure, difficult to adapt to change.

5.5. Security, legal compliance

Because WHO OCR handle many important documents such as contracts, personnel records, or financial documents, data security is mandatory criteria.

Businesses should prioritize solutions to meet:

• Security standards ISO/IEC 27001 about safety management information.
• Policy data encryption during transmission and storage.
• Mechanism of access according to role.
• Compliance with the Decree 13/2023/ND-CP on protection of personal data in Vietnam.

In addition, with deployment model on-premise (installed in the infrastructure business), businesses can fully control the data, in accordance with the industry require high security, such as banking, finance, insurance, public services.

6. Application solution digitized data with AI technology, OCR from Vietnam

In the context of business increasingly expand the scale of operation leads to the volume of paper records increased rapidly, the search for a solution digitized comprehensive data become urgent needs. Lac Viet is the pioneer in the field of technology in Vietnam, bring the solution to convert numbers closed, combined AI OCR, storage systems, material SureDMS and management platform processes of LV-DX Dynamic Workflow to help businesses automate the entire processing lifecycle profile.

• The focus of the solution is AI technology, OCR allows the identification, dissection information from images, PDF, scan documents with high accuracy. The strong point of this technology lies not only in the ability to convert character to numeric data, but also in the capacity automatic classification records, determine the type of document and put the data into the right structure, management of the business. Help remove imported materials handcrafted capital spending lots of time to develop flaws.
• After being converted, the data record number is stored, a decentralized lookup on the system document management SureDMS. LV SureDMS help construction business warehouse, centralized data safety meets security standards, integrated AI chatbot support, quick search, even with the volume of material.
• Finally, the entire data is directly connected to the management system, processes of LV-DX Dynamic Workflow. Thanks to that, businesses can automate business processes as approved contract processing, personnel records, rotation vouchers or control over compliance. All done on a unified platform, reduce processing time, increase the ability to control and enhance operational efficiency.

The solution digitized data of Lac not only help business “switch from paper to digital,” which also created the platform for operational intelligence, transparency, automation, deep – factors important to business spurt in the digital era.

Get advice demo from the experts Lac for more details.