Optical Character Recognition (OCR)
OCR technology converts images of text, such as scanned documents or photos, into machine-readable text data that can be edited and searched.
OCR is a foundational AI technology that digitizes physical documents, making them usable for various business applications. For small businesses, this means no more manually typing data from receipts, invoices, or contracts. OCR can automatically extract key information like dates, amounts, vendor names, and line items from scanned documents. This not only saves immense time but also reduces data entry errors, making processes like expense reporting, invoice processing, and document archiving much more efficient and accurate.
A construction company uses OCR to scan paper receipts and invoices from suppliers, automatically extracting purchase details and amounts directly into their accounting software without manual data entry.