What is Intelligent Character Recognition: Benefits, Use-cases

Intelligent Character Recognition (ICR) is more than just a fancy tech term - it's like having a super-smart assistant who can read even the messiest handwriting. According to a PwC report, automation can improve efficiency by 30% to 40%.

This article will discuss ICR, its benefits, and various use cases. We will also compare it to other data capture technologies to help you decide on the best option for your business.

What is ICR?

Intelligent Character Recognition (ICR), or intelligent OCR, is a data capture technology that reads and converts handwritten or printed text into digital characters. ICR uses advanced algorithms and AI to recognize handwritten styles, languages, fonts, and sizes. ICR OCR helps automate data capture for businesses in the following ways:

• Scanning paper-based documents
• Storing extracted data digitally
• Integrating extracted data into business workflows
• Using the extracted data for trend analysis and predictive modelling

An example of using ICR is extracting data from handwritten medical records, such as patient charts and prescriptions. ICR OCR tools help healthcare providers create Electronic Health Records (EHRs) faster and more accurately.

How is ICR different from other AI technologies?

ICR is often confused with other AI technologies, such as:

• Optical Character Recognition (OCR)
• Handwriting Recognition (HWR)

While all these technologies involve converting handwritten or printed text into digital characters, they are different.

ICR vs OCR: What’s the difference?

OCR systems recognize printed text from scanned documents, images, and PDFs. Optical Character Recognition (OCR) identifies text in standard fonts and printed materials. It is suitable for digitizing books and archiving documents to convert them into editable and searchable digital text. Businesses use OCR to automate data entry from structured forms.

For instance, a library digitizes its collection of books using OCR software. The scanned images of the books are converted into searchable and editable documents, which allows users to quickly find specific paragraphs or pages from a book.

Conversely, ICR is an advanced OCR form that uses ML algorithms to recognize handwritten text and font styles. It improves data accuracy over time and adapts to new handwriting styles and a wide variety of fonts. ICR is highly beneficial for businesses dealing with handwritten entries in forms or documents with different fonts.

For example, a healthcare provider uses ICR to process patient intake forms filled out by hand. The ICR system learns to recognize various handwriting styles, accurately extracting patient information without manual data entry.

Difference between ICR and HWR

Handwriting Recognition (HWR) or Handwritten Text Recognition (HTR) recognizes and interprets handwritten text. It includes complex cases such as cursive handwriting, hand-printed text, and mixed handwriting styles.

HWR systems identify whole words or phrases, not just individual characters. It improves accuracy in extracting data from handwritten documents and enhances contextual understanding.

On the other hand, ICR uses ML to offer character-level recognition of the following:

• Alphabets
• Dates
• Numbers
• Codes
• Symbols

ICR systems automate the interpretation of corresponding values of each section in a hand-filled form. It excels at extracting specific information like:

• Name
• Address
• Identification number

Although both technologies involve recognizing handwriting, they serve different purposes and complement each other in accurately extracting data from handwritten documents. Here is a comparison table to help you understand the differences between ICR vs OCR vs HWR.

Benefits of using ICR

ICR streamlines data extraction to help organizations make informed decisions rather than spending time and resources on manual processes. The key benefits of using ICR are:

1. Automates Data Processing

ICR automates data extraction, from scanning documents to extracting information accurately. It reduces human error and speeds up data processing.

2. Increases Efficiency

ICR speeds up document processing and frees employees from mundane tasks like:

• Sorting and organizing documents
• Manually extracting data from hand-filled forms
• Transcribing data from paper to digital formats

Employees can use their time for more important tasks, improving their productivity.

3. Improves Data Accuracy

ICR uses ML to extract data accurately. It reduces the need for manual data entry and the risk of human error. It also maintains data consistency across multiple documents.

4. Reduces Costs

Automating data extraction processes eliminates manual labor and paper-based document management. It reduces employee time and resources while preventing costly errors, leading to cost savings.

5. Enhances Data Security

Digitally storing documents minimizes the risks of losing or damaging physical files. The software includes security features like encryption and user authentication to protect sensitive data.

6. Integrates with Other Applications

ICR solutions offer seamless integration with applications like Customer Relationship Management (CRM) Systems, Patient Management Systems (PMS), or Document Management Software (DMS). It ensures smooth information flow across platforms.

7. Offers Flexibility

ICR technology can adapt to different document formats, fonts, writing styles, and languages, making it a versatile solution for businesses of all sizes. It works across different devices, such as desktops, laptops, and mobile devices, offering flexibility in document processing.

How does ICR work?

Robotic process automation is a technology that configures ICR software and executes error-free tasks. Computer vision, pattern recognition, AI, and speech recognition are features deployed with robotic process automation and ICR to extend the capabilities of modern ERP suites. 

The reports generated are accurate, and ICR lets humans gain insights from sophisticated analytics, which assists them in making key business decisions. Here is how ICR works when it comes to document extraction for enterprises:

• Documents are uploaded to the ICR scanner
• Pre-trained APIs read the image in detail and scan it. The system interprets handwritten text and fonts automatically, taking references using a pre-existing database.
• The software might ask the user to upload handwritten signatures for user verification.
•  Data gets extracted from documents using key-value pairs and is structured automatically.
•  After proofreading and checking for spelling errors, the ICR software flags anomalies (if found) and sends documents to users for review.
•  Otherwise, the documents are processed, and the data from fields are automatically entered into accounts payable systems for record-keeping

Next time the user wants to upload more documents, the APIs automatically create new models for reading and interpreting information when new document types are introduced. Or else, it uses old models to scan and read data if the same types of documents are uploaded.

Check out how Biagi Bros accelerates data capture from 11K Bills of Lading & Invoices monthly

Top 10 Real-World Applications of Intelligent Character Recognition

ICR is widely used in various industries for data extraction, document processing, and automation. Here are the top 10 real-world applications of ICR:

1. Banking and Financial Services

Banks, NBFCs, and financial institutions gather large volumes of customer data. ICR helps with the following activities:

Check Processing

Checks are handwritten, and ICR automatically extracts information from them, such as

• Account holder name
• Account number
• Check number
• Check amount
• Routing number

It speeds up deposit processing and enhances fraud detection.

Loan Applications

ICR processes hand-filled loan applications to extract necessary data like 

• Personal details
• Financial information
• Employment details

Reducing data entry errors accelerates the loan approval process.

2. Healthcare

ICR assists in digitizing large volumes of patient data and updating EHRs from the following documents:

Patient Intake Forms

Hospitals, clinics, and other healthcare facilities use ICR toquickly extract patient information from hand-filled formy.

Medical Records

ICR processes handwritten medical records to extract information like 

• Patient history
• Diagnoses
• Treatment plans

Prescriptions

ICR reads prescriptions written by hand and extracts necessary information for patient follow-up care, such as:

• Medication name
• Dosage
• Frequency
• Instructions

Medical Claims Processing Form

ICR accelerates claims processing and ensures timely reimbursements by processing medical claims forms to extract data, such as:

• Patient details
• Medical procedures
• Healthcare provider information

3. Insurance

ICR helps insurance companies deal with a large volume of data from the following:

Claims Forms

ICR processes handwritten claims forms to extract data like:

• Policyholder information
• Claim details
• Accident/incident details

Insurance Applications

ICR extracts the following data from insurance applications:

• Personal details
• Financial information
• Property details

It speeds up the insurance claim application process, reduces errors, and helps detect fraud.

4. Education

Schools, universities, and educational institutions use ICR to process various documents, such as:

Student Applications and Admission Forms

ICR extracts data from hand-filled student applications for:

• Admission
• Scholarships
• Financial aid
• Student details
• Educational background
• Course preferences

Class Notes

ICR aids in converting handwritten study material into a digital format for better organization and accessibility. It covers:

• Lecture notes
• Study guides
• Handouts

Examination Sheets

Examination papers are processed by ICR to accurately and quickly extract data like:

• Student details
• Examination details
• Answers
• Marks obtained

Transcripts

Handwritten transcripts are time-consuming. ICR accurately transcribes data, such as:

• Student name
• Course names
• Grades

Improving transcript processing speeds up graduation decisions and improves academic recordkeeping.

5. Legal

Law firms use ICR to deal with handwritten documents  such as:

Contracts

Handwritten contracts are challenging to extract data from. ICR automates this process and extracts information like:

• Dates
• Signatures
• Party names
• Terms and conditions

Case Files

ICR reads handwritten case files to extraccriticaley details such as:

• Client information
• Key dates
• Case background

Legal Forms 

ICR reads hand-filled legal forms to extract necessary data, such as:

• Case details
• Parties involved
• Dates and deadlines

6. Retail

ICR helps retail businesses process handwritten documents to improve order processing speed, such as:

Invoices

ICR reads hand-filled invoices to extract data like:

• Customer details
• Products purchased
• Prices

Order Forms

Handwritten order ICR processes forms to collect data like:

• Order details
• Shipping information
• Payment information

7. Real Estate

Real estate companies use ICR to process documents, such as quickly

Property Deeds

ICR reads hand-filled property deeds to extract data like:

• Property details
• Owner information
• Purchase date
• Price

Lease Agreements

Handwritten lease agreements are processed by ICR to extract important details like:

• Tenant information
• Rental terms
• Lease period

Property Surveys

ICR reads handwritten property surveys and extracts data like:

• Boundaries
• Measurements
• Land features

8. Logistics

ICR is also used in the logistics industry to streamline operations and improve efficiency. Some examples of documents that ICR can process include:

Invoices

Handwritten invoices can be automatically read by ICR to extract information such as:

• Customer details
• Item descriptions
• Quantity
• Price

Delivery Notes

With ICR, handwritten delivery notes can be quickly converted into digital records with important data extracted, such as:

• Delivery date and time
• Recipient's name and address
• Items delivered

Packing Slips

Handwritten packing slips are easily processed by ICR to extract relevant data like:

• Shipment details
• Order numbers
• Product descriptions
• Quantity shipped

9. Manufacturing documents 

ICR can also be used for handwritten manufacturing documents, such as:

Production Reports

ICR can extract data from handwritten production reports, such as:

• Production quantities
• Machine downtime
• Quality control information

Inspection Forms

With ICR, inspection forms can be processed to extract important data like:

• Defects found
• Measurements and specifications
• Product codes and descriptions

10. Hospitality

In the hospitality industry, ICR can help with handwritten documents such as:

Guest Registration Forms

With ICR, guest registration forms can be quickly processed to extract data like:

• Guest name
• Contact information
• Reservation details
• Special requests/notes

Feedback Forms

ICR can process handwritten feedback forms to extract important guest feedback on their stay and use it to improve the customer experience.

Ready to Use Intelligent Character Recognition (ICR) For Your Business?

ICR reduces manual effort, improves transparency, and enhances industry accuracy. It is a versatile tool that can be customized to meet your business's specific data extraction needs. ICR helps improve your business's bottom line by saving time and resources. It also increases the efficiency of your employees and improves customer satisfaction rates.

Westland, a multi-family real estate corporation, achieved 98% accuracy and saved 2000+ man hours automating data capture. Intelligent character recognition helps businesses achieve efficiency by automating data extraction.

Docsumo offers robust ICR capabilities to accurately extract data from handwritten forms, eliminating the need for manual data entry and reducing errors. It automates document processing, leading to faster turnaround times and better decision-making. 

Curious to see how ICR works? Sign up for a free demo of Docsumo today.