Document auto-classification feature enables the user to upload different documents in bulk and classify them into their respective types. It helps ease the processing of different document types and assign them to the right team-member for reviewing and approval. Let's say an underwriter receives 3 documents types over an email- driver's license, utility bills, and bank statements. Before they can process, these documents need to be classified into their respective categories. Despite taking a great deal of time, manual classification is error-prone, costly, and inefficient. Whereas with Docsumo's auto-classification feature, the underwriter can categorize all the three document types(and more) in real time, right when the documents are uploaded without any human intervention.
Document classification is a huge bottleneck for publishers, insurance companies, financial institutions, and several other firms that receive a large number of various document types to process. Before actually extracting data from these documents and organizing it afterwards, they need to classify these documents into respective categories.
There are essentially two approaches that companies employ to classify and categorize documents: -
- Manual Classification
- Automated Classification
Most companies employ the manual classification approach, while others have begun adopting the widespread benefits of automation.
Manual documents classification suffers from two fatal errors -
- Excessive time consumption - The time required to classify and process a massive heap of documents can be substantial.
- Subjectiveness - Humans hold biases and different approaches to reality which can cloud their judgment when classifying documents, leading to subjective and erroneous classification.
It takes about 20-40% of an employee's time to locate a document manually and another 50% to search for information.
However, using a document processing technology, you can swap out the manual classification process, data capture, and document routing with automation, alleviating the total expenses involved in a traditional document processing workflow.
Auto Classification of documents
A solution to the approach of manual classification is the auto-classification of documents which is much faster and more accurate. Not all auto document classification tools offer similar perks and feature sets. Certain document processing tools provide completely automated document classification and multi-page document assembly technology. This perk helps eliminate the requirement for pre-sorting and document segregation preparation.
When documents enter the system, they get identified, classified, sorted, split, assembled, and processed as per their document type, which enables you to -
- Scan documents without pre-sorting or inserting separator pages
- Automatically route documents to the appropriate department as per their content
- Auto-categorize single-page and multi-page documents
- Mark any documents with erroneous or missing pages
- Automatically verify that all relevant batch documents get scanned
- Assign classified documents to respective team members
Auto-Classification - benefits and perks
Document classification transcends beyond algorithmically classifying documents with advanced ML and renders the following perks -
1. Adaptability to highly variable content
With advanced ML technology and AI augmentation, document classification automatically categorizes scanned and digital documents as per their content, even when the content is variable.
Implementing document classification machine learning differs from typical automation document classification as it can adapt and change with the availability of data.
2. Employee time savings
Automating document classification eliminates the requirement for human intervention and manual classification of documents, which is time-consuming and potentially repetitive.
Implementing auto-classification saves employee time, improves job satisfaction, and alleviates staff turnover rate.
3. Prevent data breaches
Automated document classification helps enterprises efficiently gather and centralize data. This gesture helps identify PII (Personally Identifiable Information), reducing the risk of a data breach.
The classification of sensitive data improves organizations’ ability to evaluate and address sources of PII, delete redundant documents that contain sensitive information, and retain critical PII.
Auto-classification with Docsumo
Docsumo is a document AI software that facilitates the seamless extraction of data from different document types. The platform enables you to categorize documents into their respective document types, which saves you the trouble of opening individual PDFs or images.
You can seamlessly split massive documents according to their types without having to write custom rules. This reduces back and forth with your clients by determining if all documents have gotten submitted.
Docsumo, already, comes with a few pre-trained APIs. These APIs let you assess the accuracy of an extraction model before you choose to install it in your system. These pre-loaded APIs deliver staggering accuracies for various document types such as Invoices, Bank Statements, Passports, Acord forms, and more.
You can also train it for various other document types as per your business needs besides offering pre-trained APIs. Here is how you can easily classify document types in Docsumo: -
Step 1: Open 'API and Services - Visit ‘API and Services’ on Docsumo's interface
Step 2: Enable document types - Under 'Actions' enable the document types you wish to categorize. After enabling the required document types, their status type will change from ‘disabled’ to ‘enabled’ for that specific document type.
Step 3 - Enable ‘Auto-classification’ - To enable the ‘auto-classification’ feature, make sure that each document type that you’ve selected in the step-2 has been trained against at least 20 documents.
Step 4: Upload your documents - Go back to the ‘Document Types’ and upload the documents collectively in the auto-classification section.
Step 5: Receive classified document types - Get intelligently classified outputs according to their respective document types, which are visible under ‘Types’.
Auto-assign the classified documents
If you wish to have your invoices as well as other document types evaluated by your accounting team or an individual, you can select the ‘Auto-Assign’ option by following these steps -
Step 1: Visit 'Document Types' - Navigate to the ‘Document Types’ option.
Step 2: Open Settings - Select the Setting icon for a particular document type.
Step 3: Choose a member - Pick a suitable member from your team from the 'General Settings' option.
After following the above three steps, you can auto-classify different document types and delegate them to individual team members and obtain validation and approval.
Data protection and integration by Docsumo
We at Docsumo are GDPR compliant and strictly adhere to OWASP practices. All requests get transferred over HTTPS only, and data transfer gets encrypted with AES 256. All the stored data on S3 & Mongo dB also get encrypted.
You remain in power by choosing to delete the data from our servers promptly or periodically after you have completed document processing. You can monitor individuals with access to different data types in your organization via advanced user management.
We realize that no platform exists in a vacuum, which is why we have built our solutions to integrate with your other software. By employing plug-in APIs and out-of-the-box input and output connectors, our platform can conveniently get integrated into any workflow.
If you still feel doubtful about how Docsumo operates and simplifies real estate proceedings, safely stores and organizes data, and presents it to you at a moment's notice, book a free demo with us.
Hi, I’m Rushabh.
Everyday I speak to people who use our product to automate their workflow. Contact us and we will be happy to see how we can improve your processes.
Download PDF File
We’d love to show you how you can increase your productivity, process your documents faster and save operations cost!
A guide to automating data capture from reports, payroll or any other HR-related document into actionable format Accuracy?
In today’s dynamic business world, filing and archiving official documents in the digital form makes it handy, and works wonders in the future or in unforeseen circumstances.