AI-Powered OCR and ICR: The Future of Document Conversion

May 09, 2023

Document Conversion is the process of converting a document into a format that is required by the client.  The power of Artificial Intelligence has been widely used these days. So if we infuse AI-backed ICR and OCR technology it can reduce the complexity we come across during the document conversion process in many ways.

Document conversion

Now let us see how these technologies work in the document conversion process and how they can aid various industries

AI-powered OCR technology is a tech tool that can identify and capture data from images. This is completely beneficial to every business entity in the matter that it can digitize images. The advantage of automation is that, it can save a lot of time and effort and also it increases the degree of accuracy by eliminating human error.

Before you understand how AI- OCR works, let us know about OCR. OCR, which refers to Optical Character Recognition, is a technology that makes servers read and process images containing text.

Now let us move on to understand how AI-powered OCR works

The first step of AI- OCR technology is the processing of documents into digital format. In this step, more focus is given to eliminate wrong elements. Then the digital image turned into a black-and-white version. And, this version is used to separate characters from the background.

It is in the second phase, AI -OCR technology analysis the image to pull out characters from the background. Pattern Recognition and Feature extraction are the two ways in which AI OCR technology identifies characters/words.

During the method of pattern recognition, the technology takes out the characters from the image by comparing it with those characters that it has already stored.  Whereas Feature extraction, identifies new characters by applying AI algorithms.

Yes! now we have come to the last step, it is in this step AI identifies and removes the bugs in the final file.

Applications of AI-OCR


AI –OCR technology can be used in Insurance Industry to get many advantages. Digitizing, Verification and Validation are the three main phases through which an insurance claim undergoes. AI-OCR technology can aid in all these stages and help companies to eliminate fraudulent claims from it.


Banks are getting a lot of forms every day. If this industry uses AI-OCR technology they can view its benefit in digitizing these forms and also in finding frauds.


Legal documents are of high value. It is a necessity that it must be in a format that is easily accessible and safe. So, if you infuse AI-OCR technology, it will convert these documents into digital forms and it will be easy for you to find the document in a short period.

OCR can place important legal documents, such as loan paperwork, into an electronic database for easy reference. Also, Multiple parties can easily view and share the documents as well.

Now let us move on to understand how AI-powered ICR works

ICR which stands for Intelligent Character Recognition is a technology that infuses artificial intelligence to scan various documents and convert them into digital format.

Intelligent Character Recognition makes use of an AI Neural Network, scans the image and automatically interprets fonts and handwritten text.

ICR is actually recognizing characters from the image by comparing it with a database that it has already learned.

At times, ICR also asks for the signature of the user as a part of the verification process.

After the recognition part is over, ICR proofreads the file and points out if there are any anomalies in it.

Finally, it will send this verified document to the user for review or it saves this readable information to the database of company.

Applications of ICR

Real Estate

There are many documents related to leases, mortgages and foreclosures that property managers have to deal with every day. 

If you are integrating ICR technology into this field, you can convert the documents to digital format and thus you can receive the advantage of quick accessibility and accuracy.


Educational Institutions, that are both at higher level and lower can make use of the ICR technology can reduce their work and improve efficiency.

That is, they can take the handwritten documents into digital format. So that it will helpful for grading purposes.


A lot of documents are generated in this field day after day. ICR technology can help to handle this with more easiness by converting address proofs, receipts, invoices etc to digital format.

Wrapping Up

We hope that now you have understood the fact that all types of business entities can benefit from AI-powered OCR and ICR technologies. That means if you are able to make use of these technologies you can revolutionize your business.

But, if you don’t want to take away the attention of your in-house employees from core activities, the team of Allianze BPO International is here to help you with our document conversion services. So if you want us to partner with you, please let us know your requirements via [email protected]


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