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Written by Max Zeshut
Founder at Agentmelt
A technology that combines OCR, NLP, and machine learning to extract, classify, and validate data from unstructured documents—invoices, contracts, medical records, tax forms, and government filings. IDP goes beyond basic OCR by understanding document structure, extracting specific fields (invoice amount, vendor name, due date), and handling variations across document formats. AI agents use IDP as a tool to process documents as part of larger workflows like accounts payable, claims processing, and compliance review.
An accounts payable agent receives a PDF invoice via email. IDP extracts the vendor name, invoice number, line items, amounts, and payment terms—even though the invoice layout is different from the last vendor's. The agent matches the extracted data against the purchase order and routes for approval.