In the digital age, where information is often a click away, the ability to quickly access, search, and analyze textual data has become increasingly important. However, when dealing with certain file types like PDFs, extracting and manipulating text or tables isn't always straightforward. This is where PDF OCR comes into play.
In this article, we'll delve into the world of PDF OCR. We'll explore what it is, how it works, and why it's indispensable for businesses. We'll also examine some of the best PDF OCR tools on the market and discuss future trends in this cutting-edge technology.
Understanding PDF Files
Adobe Systems first introduced the Portable Document Format (PDF) in 1993, later followed by the International Organization for Standardization (ISO) 32000 standard.
Did you know that today there are over 2.5 trillion PDFs?
How Many Types of PDFs are There?
Over the years, PDFs have evolved into different versions with improved features and capabilities.
| PDF Types | Description |
|---|---|
| Standard PDF format | |
| PDF/A | Used for long-term storage |
| PDF/E | Used for engineering and construction documents |
| PDF/X | Used for graphic designing and printing |
| PDF/VT | Stand for variable and transactional printing. Has more advanced customization than PDF/X |
| PDF/UA | Stand for universal accessibility. Helps to improve the user experience for people with disabilities |
Challenges of Manual Text Extraction from PDFs
PDF documents are widely used across various industries to store and share information. Unfortunately, despite the rise of technology, some businesses still perform manual data entry tasks.
As a result, only 12% are able to take action on their data insights automatically.
When starting a business, since you don't have many documents, manual data entry tasks won't be time-consuming. But as you grow, so do those documents! It's not worth dedicating time and resources to tasks that can be automated.
In 1992, George Labovitz and Yu Sang Chang introduced the 1-10-100 rule to assess the impact of bad data. It takes $1 to verify data, $10 to correct incorrect data and &100 when the data hasn't been cleaned.
It's impossible to avoid human errors with manual data entry. Human error rates typically hover around 1%. This leads to inconsistencies in data accuracy which can result in compliance and financial issues and unsatisfied customers.
OCR for Automating Data Extraction
From the 1990s to the 2000s, Optical Character Recognition (OCR) technology gained popularity for automating manual processes in different sectors like healthcare and financial services.
Google Books was launched to scan and convert books and magazines using OCR.
How Does OCR Work?
OCR technology converts images, scanned PDFs, and handwritten text into machine-readable text. There are mainly 3 stages in the OCR process:
- Preprocessing: The OCR software prepares the document using techniques such as noise removal, deskewing, and rescaling.
- Character/Text Recognition: Pattern and feature recognition are two methods used to identify the text in a document.
- Post-processing: Data is converted into structured text.
Read more about what is OCR
Challenges of Traditional OCR
Traditional OCR or regular OCR only extracts data into plain text, meaning this data cannot be sent to another application.
OCR technology may not recognize complex formatting, such as tables, charts, or graphics, and may require further processing to extract this information.
It can be difficult to extract data accurately from documents with varying layouts and formats. Around 10-15% of the data will always be missing or inaccurate.
What is PDF OCR? Combining PDF and OCR
PDF OCR converts data into searchable and editable data. It uses advanced algorithms like Machine Learning (ML), computer vision, Natural Language Processing (NLP), and Artificial Intelligence (AI) to extract data accurately.
Types of PDF OCR
To counter the limitations of traditional OCR, there have been advanced OCR technologies like OCR Zonale and AI OCR.
Zonal OCR
Referred to as the second generation of OCR, OCR Zonale extracts data from specified "zones" in a document. Unlike a regular OCR tool, it can convert unstructured text into structured data
Read more about what is Zonal OCR
Dynamic OCR
Parseur created OCR Dinamico to extract fields that move within a document or vary in size. For example, fields like "total" or "grand total" don't stay in a fixed position.
Read more about what is Dynamic OCR
AI OCR
AI-powered OCR tools can leverage advanced technologies like deep learning, leading to fast data extraction and processing. They have the ability to handle large amounts of data. Combining OCR and AI has greatly enhanced the data capture process.
Read more about what is AI OCR
Why Use PDF OCR?
Automating data extraction with PDF OCR will help your business to be more cost-effective. Let's look at the benefits of PDF OCR below.
Reduces Time Spent on Manual Data Entry Tasks
One of the main advantages is the elimination of manual information processing. Your employees will no longer have to spend hours looking for specific data, copying, and pasting that data into another database. This process will be fully automated!
Converts PDF Files into Editable Formats
With PDF OCR, scanned documents or image-based PDFs are automatically converted into searchable versions. This increases efficiency when searching for specific keywords.
Seamlessly Integrates with Existing Databases and other Applications
You can connect PDF OCR to thousands of other tools like Zapier, Power Automate, Zoho CRM, or ERP software. You can also send data via Webhook or a custom API.
PDF OCR Use Cases
PDF OCR is a valuable tool for any organization looking to streamline its processes.
Invoice Processing
Digitizing paper invoices using PDF OCR technology can help businesses maintain better records and simplify invoice and payment tracking.
Data from scanned invoices can be automatically sent to QuickBooks or any other accounting software.
Further reading
How to automate invoice processing
Bill of Lading
PDF OCR technology can help companies streamline their BOL processes and improve accuracy, efficiency, and communication. This can lead to significant cost savings and other benefits for businesses that rely on shipping and logistics to operate.
E-commerce
It can help improve order processing accuracy and speed by automating data extraction from purchase orders, invoices, and shipping documents. This can help businesses process orders faster and more efficiently, reducing order fulfillment times and improving customer satisfaction.
Factors to Consider When Choosing a PDF OCR Tool
You can find any data extraction tool on the internet but it's important to invest in one that meets your business' needs and budget.
- Does it have a high accuracy rate?
- Does it support multiple languages?
- Is it low-code, no-code, or require technical expertise?
- Can it be integrated with any application?
- Is it advanced PDF OCR software?
Best PDF OCR Tools in 2025
We've compiled a list of the top 5 PDF OCR software to keep an eye on this year.
Parseur
Parseur goes beyond OCR with its powerful AI engine to extract data from PDFs with a high level of accuracy.
- Supports 100+ languages
- Has AI-powered templates for various industries
- Integrated with OCR Zonale and OCR Dinamico
- Can recognize handwritten text and alphabet
- Has a powerful template-based platform
- Has native integration with Zapier, Make and Power Automate
- Can also extract data from emails automatically
- Can extract tabular data and repeating text blocks
View all of Parseur's features
Parseur has a free plan with all features available. The paid plans are 3 times less expensive than other software.
Compare Parseur with other PDF parsers
Happy Customer
We have been using Parseur for several years now. Of all the SaaS applications we use, and there are many, Parseur is one of the few with zero downtime. Combined with excellent support, I can only recommend Parseur from A to Z.
Adobe Acrobat Pro
It's a popular PDF editor with OCR capabilities that converts scanned files into editable formats. It can recognize any text and formatting and also has multilingual support.
ABBYY FineReader PDF
ABBYY has AI-powered OCR technology that can digitize and scan paper documents. It's compatible with Windows, macOS, and mobile and has a user-friendly interface. It also has a screenshot reader that converts screenshots into text.
Readiris
Readiris is a one-stop solution to convert, edit, and sign documents. It is intelligent OCR software for both Windows and Mac OS. It can also convert documents into audio files with its speech recognition feature.
Google Document AI
Document AI's OCR technology is used to convert scanned or digital documents into searchable and editable text. It has built-in pre-trained models integrated with OCR for document processing and data extraction.
The Future of PDF OCR
PDF OCR tools integrated with AI can easily bridge the gap between static documents and editable files. With the continuous advancement of AI, we will definitely see more sophisticated software revolutionizing the data extraction process.
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