OCR vs IDP: Understanding the Difference
OCR extracts text from images; IDP extracts meaning and structure from documents using AI.
OCR (Optical Character Recognition) and IDP (Intelligent Document Processing) are often confused, but they serve different purposes in document processing workflows.
**OCR (Optical Character Recognition)** - Converts scanned images or photos of text into machine-readable text - Focuses on character recognition accuracy - Output is raw text without structure or meaning - Works well for simple, clean documents - Technology has existed since the 1970s
**IDP (Intelligent Document Processing)** - Uses AI to understand document meaning and context - Extracts specific data points, not just text - Classifies documents and identifies entities - Handles complex, variable document layouts - Represents modern AI/ML capabilities
**When to use each:** - Use OCR when you need to digitize documents for search or archival - Use IDP when you need to extract specific data for analysis or automation
Spredo combines advanced IDP capabilities with a user-friendly spreadsheet interface, making document intelligence accessible without requiring technical expertise or API integration.
Related Terms
Frequently Asked Questions
Can IDP work without OCR?
IDP typically includes OCR as one component, but adds AI layers on top. For native digital PDFs, OCR isn't needed—the IDP system works directly with the text layer. For scanned documents, OCR runs first, then AI processing.
Is OCR becoming obsolete?
No, OCR remains essential for converting images to text. What's changing is that standalone OCR is insufficient for business needs. IDP builds on OCR to deliver actionable data extraction, not just text conversion.
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