Document classification has become a vital component of modern document management systems, evolving far beyond manual sorting or basic automation.
At its core, document classification assigns files to predefined categories — for instance, identifying a name on a form as “First Name” and “Personal Information”. This ensures information is organised for easy access, retrieval and use in future processes like personalisation or reporting.
SS&C Blue Prism, which offers digital automation technology, recently delved into how AI agents can improve document management.
With the rise of intelligent document processing (IDP) and artificial intelligence (AI), businesses can now automate document classification in ways that were not possible before. Traditional methods relied on strict templates or formats, often breaking when variations occurred, it said. AI-driven solutions, using machine learning (ML), natural language processing (NLP) and large language models (LLMs), can understand content and context, handling unstructured data with accuracy and speed.
Conventional systems, often using optical character recognition (OCR), struggled with unfamiliar formats or inconsistent layouts. AI, however, adapts easily to changing document structures and languages. It can interpret meaning, process diverse document types, and deliver accurate results without constant human oversight, making classification scalable and efficient.
AI document classification operates using three key training methods. Supervised learning delivers high accuracy through labelled datasets, while unsupervised learning discovers patterns without predefined categories, offering quick setup. Semi-supervised learning blends both approaches for balanced efficiency and accuracy.
Practical applications illustrate AI’s impact. At SS&C’s Innovation Lab, a Trade Reconciliation Agent automatically classifies trade documents, extracting data through AI gateways before reconciling it with trading platforms. This technology reduces manual intervention, scales operational capacity and boosts data precision.
The benefits go beyond speed and accuracy. AI enhances search capabilities, ensures compliance with regulatory requirements, and improves data insights by understanding context and sentiment. Combined with orchestration tools, AI agents now integrate seamlessly with human workers and other systems, driving end-to-end automation in document management.
For more, read the full story here.
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