Modern Digital Business | DocuWare Blog

Automated Document Scanning Solutions for Your Business

Written by Joan Honig | Jul 25, 2025

This article explains what automated document scanning is, how it works, and why your company should implement it. You will find out about the benefits of automation and the added advantages of using AI-driven software.

Table of Contents

What is automated document scanning?

Automated document scanning is the process of digitizing paper documents using a scanner along with software that automatically captures text, extracts data and classifies the document with minimal human intervention. Traditional automated scanning uses optical character recognition (OCR).  
 
Intelligent document processing (IDP) uses machine learning algorithms and AI models that learn from existing documents and data without programming. Your company can opt for preconfigured AI models or customized ones. Preconfigured models are quicker to deploy, requiring less effort and shorter implementation timelines. Customized models meet the specific needs of your company and are trained on your datasets to align with your business goals.

How does automated document scanning work? 

Every paper document you receive can be scanned using several types of scanners like networked multi-function printers, high-speed scanners, desktop scanners and even smartphones. Scanning software then indexes every document based on categories and fields you define.  
 
Some scanning software includes tools to check and fix converted text using dictionaries or context to spot errors before saving the file as a searchable digital document. If your scanning software uses AI and machine learning, it gets better at indexing over time, improving accuracy with each change you make.

The role of OCR and IDP in automated document scanning  

What is OCR, and how does it work? 

Optical character recognition (OCR) captures printed and handwritten text from documents and images, converting it into machine-readable text. Traditional OCR uses pattern recognition algorithms to scan the text from paper documents and applies business rules to extract it. This type of OCR works best with structured data, which is in a fixed layout. Examples of structured data include timesheets, Excel files and some online forms. 
 
While traditional OCR technology is used extensively, it has drawbacks. It can be inaccurate, particularly when dealing with complex text, messy handwriting, and unclear and skewed scans. Conventional OCR also relies on barcodes or separator pages to divide document batches.

What is IDP, and how does it work? 

IDP is next-generation capture software that combines more advanced OCR features with AI and machine learning. It uses deep-OCR, which combines deep learning and neural networks, to improve the accuracy of text recognition. Deep-OCR recognizes text in almost all fonts, sizes and layouts. Natural language processing (NLP) equips IDP to interpret and analyze human language, enabling the creation of summaries and content evaluations. In addition, machine learning algorithms enhance these processes by recognizing patterns and continually refining accuracy and efficiency over time. 
 
Machine learning models are "trained" to recognize information in documents to enable accurate classification and precise data extraction. These models learn to detect patterns, predict outcomes, make decisions, or even create new content like document summaries. 
 
IDP excels at data extraction, automated classification, and validation across various document types, including structured and unstructured formats. This is particularly important for businesses managing high volumes of documents. 
 
 

Key benefits of scanning and digitizing documents

Reclaim office space and improve efficiency 

Imagine an office with no clutter from paper files and supplies. Scanning paper documents into a digital format frees up storage space. Once you've scanned documents, it's often okay to discard the paper copies. However, keep essential documents like wills, notarized contracts, property titles, and annual financial statements in both physical and digital formats. This results in a tidier and more welcoming workspace. 

Eliminate manual data entry 

Entering data manually takes time and effort, causing processing delays and affecting overall productivity. Even skilled data entry workers make mistakes. Typographical errors and incorrect data compromise accuracy, lead to extra work and expose your company to compliance risks. 
 
It’s expensive too, especially for businesses that process large volumes of documents. The costs of employing dedicated data entry staff include salaries, training, and staff management. 

Enhance accessibility 

Scanning, digitizing and classifying documents enable employees to find and retrieve information quickly. They can search by keywords, metadata or full-text search. Digital documents are also accessible from anywhere with an internet connection. This makes them ideal for remote employees or companies with offices in multiple locations. After scanning, critical business documents can be stored in a document management system, a central database that can be accessed from anywhere by authorized employees 

Implement automated workflow 

Manual processes often lead to bottlenecks. A paper document can sit for days awaiting the next step, only for someone to realize that it was never sent to the right person. With automated workflow, you can be sure that a document is routed correctly and delegated to another team member if an employee is out of the office. The system will also send reminders if action isn’t taken within a set timeframe. 
  
In addition, automated workflow provides version management, which eliminates confusion caused by circulating paper documents or relying on email to collaborate. 

Integrate with other business software 

Because you’re working with digital documents and data, it’s easy to share data with accounting, human resources, customer relationship management software, as well as other business software that’s part of your IT infrastructure. 

Improve customer satisfaction 

Companies that rely on slow, manual processes can’t provide the high level of service that today’s customers expect. For example, if processing applications for insurance or mortgages is stalled, customers may turn to competitors that use modern technology. The better customer experience also improves customer satisfaction and retention. 

Boost the security of critical data 

Digital storage lets you safeguard valuable information with passwords and access controls. It helps your business meet compliance standards and avoid penalties or revenue loss. 
 
Digital documents can be: 
  • Protected against unauthorized access with passwords, individual and role-based permissions and encryption. 
  • Stored securely with audit-proof procedures. 
  • Backed up frequently to prevent data loss. 

Transform Your Document Processes with DocuWare 

Implementing automated document scanning is a strategic move for businesses aiming to increase the efficiency of document-intensive processes. It transforms paper documents into digital assets that are easy to manage, store and retrieve. Automation also eliminates the hassles of manual data entry, boosts accuracy, and enables robust data protection. 
 
DocuWare Cloud, a market-leading document management system, provides high availability, advanced security and unmatched disaster recovery capabilities. With the addition of DocuWare IDP, your company will experience enhanced data accuracy, cost reduction, and improved security and data privacy protection. Automated document scanning speeds up your processes and prepares your organization for a successful digital future.