Manually sorting through piles of documents is not just tedious; it’s simply outdated. Businesses handle an overwhelming amount of data, much hidden inside unstructured documents. Intelligent Document Processing (IDP) tools are like your trusty sidekick, ready to save the day by turning all that data chaos into structured, actionable insights.

IDP tools combine AI, machine learning, and automation to extract, process, and analyze data, making them indispensable for your modern business. This blog will explore the top IDP tools redefining how businesses process information.

What is Intelligent Document Processing (IDP)?

Imagine having a tool to read documents and understand and extract the necessary information. That’s the magic of the Intelligent Document Processing solution. It’s like the brainy cousin of traditional OCR (Optical Character Recognition) tools. Instead of just reading text, IDP tools analyze, extract, and validate data from unstructured and semi-structured sources like PDFs, invoices, contracts, emails, and other documents.

Intelligent document processing tools aren’t just about saving time (though it’s excellent for that, too). It’s about reducing human errors, ensuring compliance, and making better decisions faster. With IDP, your businesses can streamline workflows and boost productivity across departments.

6 Key features to look for in IDP tools

Not all IDP tools are created equal. When choosing the right tool, consider these must-have features offered by all significant IDP vendors:

• AI/ML-powered document understanding: The gold standard is tools that learn and adapt to different document types. These tools can extract tables from invoices or identify key terms in legal contracts.
• Pre-built templates: Industry-specific templates save time and effort by addressing everyday use cases directly.
• Coding-free usage: Because not everyone’s a programmer, right? This feature makes it easier for business teams to adopt and use the tool without heavy IT involvement.
• Human validation: Automation is great, but sometimes, a human touch is needed to ensure everything is on point, especially in critical industries.
• Compliance and security: Robust tools handle sensitive data securely and comply with the organization’s regulatory standards.
• Seamless integration: With your CRM, ERP, or RPA tools, integration is key to scaling effectively.

Top Intelligent Document Processing Tools in 2025

Here’s a closer look at some of the best tools in the AI-based document automation space:

1. XDAS by Xtract.io

XDAS is a versatile powerhouse that combines GenAI technology with robust document understanding capabilities. It transforms unstructured data into actionable insights while ensuring compliance through end-to-end automated workflows. Built on decades of expertise in data processing and deep industry knowledge, XDAS offers intuitive and highly customized IDP solutions tailored to meet the unique challenges of modern enterprises.

Key features:

• GenAI-powered data extraction and processing for various document types.
• Retrieval-Augmented Generation (RAG) for contextual accuracy, ensuring high-quality data insights.
• Advanced monitoring dashboards to optimize document processing workflows.
• 200+ Pre-built templates tailored for diverse industries and common use cases.
• Human-in-the-loop validation for critical decision-making.
• Highly secure data pipelines compliant with regulatory standards.
• Scalable and customizable workflows.
• Integration with CRMs, ERPs, and RPA tools for seamless operations.

Best fit for:

• Financial services and banking institutions that manage high volumes of critical documents like invoices, loan applications, ESG, and compliance reports.
• Healthcare organizations need accurate processing of patient records and insurance claims.
• Legal firms handling contracts and regulatory documentation.
• Enterprises seek to automate and scale document-heavy operations while maintaining higher levels of accuracy in their data.

2. UiPath Document Understanding

UiPath brings its RPA expertise to document processing, making it a solid option for businesses looking to streamline repetitive tasks. It excels in environments where integration with robotic process automation (RPA) is a priority, adding value by bridging the gap between document workflows and end-to-end automation.

Key features:

• Robust integration with UiPath RPA tools for seamless automation.
• AI/ML-powered document processing for extracting data. 
• Flexible pre-trained and custom templates to adapt to unique use cases.
• Human verification for improved accuracy in critical workflows.
• Real-time monitoring and analytics to track processing efficiency and results.
• Scalable architecture for growing business needs.

Best fit for:

• Financial services automating invoice processing and loan documentation workflows.
• Healthcare organizations handle medical records and insurance claims with accuracy and compliance.
• Retail businesses automating vendor invoice approvals and supply chain documentation.

3. ABBYY FlexiCapture

ABBYY FlexiCapture is a veteran in the document automation space and is renowned for its precision and advanced OCR capabilities. Its ability to handle even the most complex and unstructured documents makes it a top choice for organizations that demand high accuracy and customization.

Key features:

• A powerful OCR engine that delivers high precision in extracting data from scanned documents, PDFs, and images.
• Flexible data extraction capabilities, including handwritten text recognition and multi-language support.
• Advanced analytics tools for process monitoring and optimization
• Pre-configured templates and customization options tailored to industry-specific needs, reducing setup time and improving accuracy.

Best fit for:

• Accurately extracts data from complex policy files and claim forms.
• Digitizing patient records, medical forms, and lab reports for quicker access and streamlined workflows.
• Capturing and validating data from loan applications, tax forms, and regulatory documents.

4. Kofax TotalAgility

Kofax TotalAgility excels at combining document capture with end-to-end workflow automation, making it a preferred choice for businesses that manage large volumes of document-centric processes.

Key features:

• Automates entire processes, from document capture to task completion, reducing manual intervention and improving efficiency.
• Processes documents from various sources, including emails, scanners, and mobile devices, ensuring seamless data ingestion.
• Provides actionable insights into workflow efficiency, enabling businesses to identify inefficient processes
• Pre-built and configurable templates for rapid deployment across industries.

Best fit for:

• Automating claims processing and policy documentation workflows.
• Streamlining loan origination and compliance reporting.
• Optimizing document workflows for order processing and vendor management.
• Enhancing productivity and reducing errors in document-intensive operations.

5. Microsoft Syntex

In addition to seamlessly integrating with Microsoft 365, Microsoft Syntex leverages AI and machine learning to enhance document management and collaboration. As an extension of existing workflows, Syntex provides a natural extension to teams already immersed in the Microsoft ecosystem.

Key features:

• Embeds directly into tools like SharePoint, Teams, and OneDrive, enabling intuitive document handling.
• Automates content and extraction workflows and ensures consistency.
• Enhances productivity by enabling teams to share documents securely within the Microsoft ecosystem.
• Pre-built and customizable models for analyzing specific types of documents.
• Automates repetitive tasks like approvals, notifications, and document routing.

Best fit for:

• Automate contract analysis and ensure compliance with legal requirements.
• Streamlining onboarding by automating the processing of employment agreements and related documents.
• Managing student records and automating admissions documentation.
• Enhancing productivity and document management with seamless integration into existing workflows.

The Best AI Document Processing Tool for your business?

Picking the right IDP tool is like finding the perfect pair of shoes, and it has to fit your specific needs. Here’s what to consider:

1. Your business needs: What problems are you trying to solve? High-volume processing? Accuracy? Choose accordingly.
2. Ease of use: If it takes months to onboard your team, that’s a red flag.
3. Scalability: Select a tool that can scale along with your business.
4. Budget: Look for tools that offer the best ROI for your investment.
5. Demo the tools: A test drive is the best way to know if a tool fits your needs.

Additionally, prioritize vendor support for a smooth implementation and sustained success.

Conclusion

Intelligent Document Processing tools have become a critical asset for organizations seeking to accelerate decision-making and remain competitive. Among the tools discussed above, XDAS has advanced GenAI capabilities, customizable workflows, and industry-specific solutions. While other tools also excel in their niches, XDAS offers unmatched versatility and accuracy, making it the go-to choice for businesses seeking comprehensive document processing solutions.

Ultimately, the best IDP tool for your business depends on your industry, use case and specific workflow needs. Leveraging the strengths of XDAS can unlock unparalleled efficiency and productivity.