Guide · Document AI
Document AI: from PDFs, scans and photos to clean data in your systems.
Template-based OCR broke every time a supplier changed its layout. Modern document AI reads documents the way a person does — understanding layout and context — and returns structured data. Combined with validation rules and a fast review screen, it turns data entry into exception handling.
By Nythrex EngineeringUpdated 2 min read
- 01
Document
PDF · scan · photo · email
- 02
Classify
Which type is it?
- 03
Extract
Fields → JSON schema
- 04
Validate
Rules · cross-checks
- 05
Review
Only exceptions
- 06
System of record
ERP · CRM · archive
Where document AI pays off
Accounts payable
Supplier invoices, credit notes and receipts into the ERP, matched to purchase orders.
Logistics
Waybills, delivery notes, customs documents and proofs of delivery from drivers’ photos.
Contracts
Parties, dates, amounts, renewal and termination clauses into a searchable register.
Onboarding & KYC
Company registration documents and IDs into structured profiles, with verification steps.
Insurance & claims
Claim forms, reports and supporting documents into case data.
HR & admin
Forms, certificates and applications into HR systems with appropriate access control.
How a modern pipeline works
- 1
Classification
Identify the document type (and split multi-document PDFs) so the right schema and rules apply.
- 2
Text and layout
OCR for scans and photos, with image clean-up for phone pictures; native text extraction for digital PDFs.
- 3
Extraction to a schema
An LLM (often a vision-capable one) returns strict JSON: header fields, line items, amounts. The schema, not a template, defines what to find.
- 4
Validation
Deterministic checks: line totals add up, VAT is consistent, dates are plausible, the supplier exists, the document matches an open order, it isn’t a duplicate.
- 5
Review
Documents that fail validation or have low-confidence fields go to a review screen showing the document and fields side by side.
- 6
Posting
Validated data goes into the ERP or CRM through its API, with the original attached and an audit trail.
What to measure
| Metric | What it tells you |
|---|---|
| Field accuracy by document type | Where extraction is reliable and where review must stay |
| Straight-through rate | Share of documents posted with no human edits — the real efficiency number |
| Exception review time | Whether the human part is fast |
| Errors reaching the system of record | The safety metric; must not increase |
| Cost per document | OCR and model usage at your volume |
See a worked scenario in Document AI for a distributor, and estimate the business case with the ROI calculator.
Frequently asked questions
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