Businesses accelerate intelligent document processing (IDP) projects in response to AI

Businesses are accelerating intelligent document processing (IDP) projects in response to the growth of artificial intelligence (AI). That’s according to a new report from solutions provider SER.

The study, conducted by the Association for Intelligent Information Management (AIIM) alongside Deep Analysis, surveyed 600 large US and European organizations on their use of IDP. It found that 65 percent of enterprises are actively considering or implementing new IDP initiatives, with two-thirds focused on replacing legacy systems.

The research also revealed that AI-augmented document processing adoption is rising and shifting into the front office. However, key barriers remain, with nearly half of enterprises expecting paper use to increase despite years of “digital-first” initiatives.

The IDP market is expected to grow to US$2.09 billion by 2026, according to Gartner. “The intelligent document processing market is expansive, with over 100 vendors, including from adjacent markets, offering full solutions or individual components,” read the recent Gartner Magic Quadrant for Intelligent Document Processing Solutions.

The rise of AI-driven IDP

Driven by a wave of generative AI-powered solutions, IDP adoption is rapidly expanding beyond traditional back-office functions like invoice processing, the report stated. Front office use cases such as managing HR files, contracts, licenses and permits are now taking the lead, showcasing AI-augmented IDP’s ability to handle complex, unstructured documents.

Interestingly, the biggest benefit of using IDP is reduced processing time (50 percent), rather than headcount reductions (30 percent), according to the study. This underscores IDP’s role as a productivity booster and not a workforce-cutting tool.

“Technologies for processing documents and recognizing invoices have been around for some time, but we’re now seeing a major AI-driven leap forward,” said Dr John Bates, CEO of SER Group. “The AIIM survey confirms what we see every day: organizations need faster, smarter and more scalable automation.”

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Hurdles threaten successful IDP adoption

The research flagged key barriers to unlocking IDP’s full potential. Despite significant digital transformation efforts, 61 percent of IDP processes still involve paper and 48 percent of respondents expect their paper use to increase. 

This ongoing reliance on paper shows that digitization alone won’t deliver a fully paperless workplace. Cultural and regulatory hurdles such as healthcare’s persistent use of fax must also be addressed to achieve truly digital workflows.

Over half of respondents also face a shortage of technological expertise and process redesign skills prompting the recommendation that, to maximize ROI, organizations should invest in change management and robust cross-functional training. 

Another constraint to IDP adoption is mounting concern over data security and privacy, cited as the top issue by the respondents and reflecting growing scrutiny of AI’s access to sensitive information. Integration challenges rank second, underscoring the need for interoperable standards and embedded IDP capabilities within platforms like Salesforce and Microsoft 365.

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