AI invoice recognition and 6 financial services applications

AI invoice recognition (a.k.a invoice automation)involves the use of artificial intelligence algorithms to extract data from invoices and generate digital records. The goal is to streamline and automate the invoice process within a business, reducing the need for manual data entry and improving the accuracy and efficiency of financial transactions.

The process of invoice recognition typically involves:

1. Scanning or capturing an invoice image
2. Pre-processing the image to improve its quality (e.g. removing noise, rotating, cropping)
3. Running the image through an OCR (Optical Character Recognition) engine to extract the text
4. Parsing the text to extract relevant information such as invoice number, date, vendor name, and line item details
5. Storing the extracted information in a structured format (e.g. a spreadsheet or a database)

The technology behind invoice recognition typically consists of a combination of machine learning algorithms, natural language processing algorithms, and image recognition algorithms.

• Machine learning algorithms are used to train the system on a large dataset of invoices and the corresponding data that needs to be extracted. These algorithms analyse the invoices and learn to identify patterns and features that are relevant for extracting the data.
• Natural language processing algorithms are used to analyse the text on invoices and extract relevant information, such as the payee/vendor, the amount, and the due date. These algorithms can understand the structure and meaning of the text and use this understanding to extract the relevant data.

invoice to pay workflow automated by tryhyphen.com

While, image recognition algorithms are used to analyse the visual elements of invoices, such as logos and graphics, and extract relevant data. These algorithms can recognize patterns and features in the images and use this information to extract the data.

Significance to financial services

Overall, AI invoice recognition has the potential to significantly improve the efficiency and accuracy of financial transactions in a variety of industries. By automating the invoice process, businesses can reduce the risk of errors, improve their bottom line, and improve the overall efficiency of their operations.

Applications of AI invoice recognition in Financial services

Starting with invoice automation, hyphen has built an embedded invoice recognition service, that enables digital service companies offer their business users invoice processing automation as a service. Hyphen automates payment operations. Any company can build complex payment flows, automate and reconcile payments across channels, with nocode.