Intelligent Document Processing (IDP) refers to a new generation of document automation systems capable of understanding, extracting, and structuring information from complex, unstructured files — including PDFs, scans, contracts, invoices, statements, and emails. Unlike traditional OCR or rule-based solutions, IDP combines AI-native OCR, machine learning, and natural language processing (NLP) to interpret context, learn from examples, and achieve high-accuracy extraction at scale.
In financial operations, IDP solves one of the biggest structural bottlenecks: the volume and variability of documents. Finance teams handle thousands of heterogeneous files every month, supplier invoices, delivery notes, contracts, bank statements, receipts, compliance documents, all of which need to be made usable before any reconciliation, control, or reporting can happen. IDP transforms these documents into clean, structured data, ready to flow into ERPs, accounting systems, or downstream AI agents.
What makes IDP particularly impactful is its ability to handle ambiguity and exceptions. Modern systems not only extract text; they understand meaning, identifying suppliers, payment terms, contract clauses, or anomalies that deviate from expected patterns. When combined with human-in-the-loop validation, IDP becomes a foundation for high-reliability finance automation.
Phacet integrates IDP at the core of its agent platform. Each agent can process multi-format financial documents, extract line-level details, apply structure, and enforce business logic with full traceability back to the original source. This makes Phacet suitable for high-stakes workflows such as supplier billing control, contract analysis, and three-way matching.
For a concrete application of IDP within Phacet, explore the Contract Intelligence use case, demonstrating how AI-driven extraction and structured outputs enable accurate, scalable document automation across finance and legal workflows.
