With so much new technology emerging these days – yes, even in the insurance space – it can be hard to keep up.
For example, some terms that might come up the more you look into COI tracking software include Artificial Intelligence (AI) and Optical Character Recognition (OCR). While those might sound like futuristic buzzwords, they’re actually great tools that can drive success, and understanding the difference between them can help you choose the right tools for your business.
In this blog, we’re exploring the two solutions, diving into where they overlap, and helping you understand how AI-powered Certificate of Insurance (COI) tracking software is leading the way to a brighter, easier compliance future.
What Is The Difference Between OCR And AI?
Let’s get into it. Optical Character Recognition (OCR) is a technology designed to convert documents (like paper, PDFs, images, etc.) into editable data. OCR identifies text within documents and translates it into machine-readable formats. It does this by recognizing characters like letters and replicating the content digitally. This makes it a great tool for all kinds of data entry tasks as it reduces the need for manual input.
Artificial Intelligence (AI), is related but can refer to a broader spectrum of technologies – really anything that aims to simulate human intelligence. AI involves things like machine learning (when a computer learns from data, getting smarter over time), natural language processing (when a computer learns how to understand humans and “speak” to them), and predictive analytics (using past data to make an educated guess about the future). AI is different from older technologies because of its amazing ability to continuously learn and improve based on new information, and its ability to interpret human queries and respond to them in a way we can understand.
So, while OCR can be a component of AI, they are not the same thing. AI-backed systems like AI-powered COI tracking platforms might incorporate OCR for text extraction but go further by interpreting that extracted data, identifying patterns, and making informed recommendations. In the world of compliance, this might mean that OCR could read the expiration date on a COI, while AI could analyze whether that date meets specific compliance requirements and send an alert if action is needed.
Does OCR Check For AI?
A common question or misconception people have when it comes to OCR is its ability to recognize AI. OCR is fairly limited in its application to text recognition. It does not have the ability to identify or analyze AI. In simple terms, it converts written or printed text into digital formats, but cannot interpret the meaning or context of the information. This can still be great for streamlining COI management – but AI takes things to the next level.
Today, OCR and AI intersect in various technologies and applications. Once OCR takes on the initial steps of text extraction in a project, AI can take over to process, analyze, and form insights from the data. For instance, in COI tracking software, OCR might scan and digitize insurance certificates, but AI algorithms will verify coverage details, check for compliance issues, and provide actionable insights.
AI can also enhance OCR capabilities. While traditional OCR might struggle with handwritten text or low-quality scans, AI-powered OCR systems can use machine learning to improve text recognition accuracy over time, providing more efficient document processing solutions.
What Is The Difference Between OCR And Intelligent Document Processing?
We won’t throw too many more acronyms at you from this point on, we promise. However, Intelligent Document Processing (IDP) is another term that will likely come up in this space. This is essentially an evolved document management technology, powered by AI.
While OCR focuses on text recognition, IDP leverages AI to process, analyze, and manage documents, using machine learning and natural language processing to not just extract text but also context, making it able to form a deeper understanding of content and provide improved data handling.
AI further enhances document processing by enabling IDP systems to learn from previous interactions and continuously improve their accuracy and efficiency. This means that over time, the system becomes better at recognizing complex document structures, interpreting nuanced language, and automating decision-making processes, ultimately saving businesses time and headaches.
How Can You Tell The Difference Between AI And Text?
Text processing takes many forms these days, from the basic (although also amazing) capabilities of Optical Character Recognition to the powerful, iterative, and scalable functionalities of Artificial Intelligence.
AI’s role in interpreting and generating text goes beyond simple recognition. While OCR can identify and digitize text, AI can analyze the meaning, context, and implications of that text.
For example, in COI tracking OCR might be useful for extracting details like policy numbers, coverage dates, and insurer names from a certificate. AI, on the other hand, can do things like evaluate whether a policy meets specific contractual requirements, flag any discrepancies, send alerts for follow-up steps, and even predict potential compliance risks based on a vendor’s historical data.
This level of interpretation simply isn’t possible with OCR alone – which is why we’re seeing so many companies try their hand at smarter, more streamlined operations powered by AI.
Take Your COI Management To The Next Level
Ready to experience the full potential of AI in COI management, with a team of experts here for you through all of the technical terms? Book a demo today to see how AI-powered COI tracking software can transform your compliance processes and keep your business protected.