OCR and document parsing using AI Builder (Power Platform)

OCR and Document Parsing Using AI Builder (Power Platform): A Detailed Guide

Introduction

In today’s data-driven world, organizations often deal with large amounts of unstructured data, including paper documents, PDFs, images, and forms. Extracting valuable insights from these documents manually is time-consuming, error-prone, and inefficient. Optical Character Recognition (OCR) and document parsing are essential technologies that allow organizations to digitize and extract structured data from unstructured text. Microsoft’s AI Builder, part of the Power Platform, provides an easy-to-use set of tools that integrate machine learning models for OCR and document parsing, helping users automate and streamline these tasks without requiring deep technical expertise.

AI Builder offers pre-built models for OCR and document processing, allowing users to leverage these models through a no-code or low-code interface within Power Apps, Power Automate, and other parts of the Microsoft ecosystem. This enables organizations to create intelligent workflows that automatically extract and process data from documents like invoices, receipts, contracts, and more.

In this detailed guide, we will explore how to use AI Builder for OCR and document parsing, covering each aspect of the process, from understanding OCR, setting up AI Builder, integrating with Power Apps and Power Automate, customizing the solution, and deploying it into production. We will also cover potential use cases, best practices, and how organizations can take full advantage of AI Builder’s capabilities to automate document processing tasks.

1. Understanding OCR and Document Parsing

Before diving into AI Builder, it’s important to understand the fundamentals of OCR and document parsing.

a. What is OCR?

OCR (Optical Character Recognition) is a technology used to recognize and convert different types of documents, such as scanned paper documents, PDFs, or images, into editable and searchable text. OCR works by analyzing the structure of documents, recognizing the characters, and translating them into machine-readable text.

There are two main types of OCR:

Traditional OCR: Typically used for printed text and simple layouts.
Intelligent OCR: More advanced and capable of recognizing handwriting, complex layouts, and handling different languages.

OCR technology is used in a variety of applications:

Scanning and digitizing paper-based forms.
Extracting text from invoices, receipts, and contracts.
Enhancing document management systems for easier searchability.
Processing medical records, legal documents, and more.

b. What is Document Parsing?

Document parsing is the process of extracting structured data from a document and interpreting its content in a meaningful way. This often involves:

Identifying key fields: Extracting specific pieces of data from structured or semi-structured documents (e.g., dates, addresses, totals, line items).
Data extraction: Parsing the text and converting it into a structured format such as JSON, CSV, or database entries.
Data categorization: Understanding context and relationships between the data, especially in complex documents.

For example, in the case of invoices, document parsing would identify fields such as invoice number, date, line items, total amount, and vendor details, and then extract and organize this information for downstream processing.

2. Introduction to AI Builder

AI Builder is a powerful low-code platform provided by Microsoft as part of the Power Platform. It enables business users and developers to create custom AI solutions and integrate them into Power Apps, Power Automate, and Power Virtual Agents without needing advanced machine learning skills.

AI Builder includes various AI capabilities, such as:

Object detection: Identifying objects in images.
Form processing: Extracting data from documents like invoices, receipts, and more.
Text classification: Categorizing text into different groups.
Entity extraction: Extracting specific entities from text (e.g., names, dates, locations).

In the context of OCR and document parsing, AI Builder provides two primary models:

Text Recognition (OCR Model): A pre-built model that allows users to extract text from images or scanned documents.
Form Processing Model: A customizable model that can be trained to extract specific fields and data from documents like invoices and receipts.

3. Setting Up AI Builder in Power Platform

To get started with AI Builder for OCR and document parsing, you need to first set up Power Platform and AI Builder in your Microsoft environment. Here’s how you can do that:

a. Sign Up for Power Platform

Create an account: If you don’t already have a Power Platform account, you can sign up for one through the Microsoft website. You’ll need a Microsoft account to access Power Apps, Power Automate, and AI Builder.
Access AI Builder: Once you have your account, sign in to the Power Apps portal or Power Automate portal. AI Builder is available within these tools, and you can access it by selecting the AI Builder tab from the left navigation pane.
Environment Setup: You can configure different environments in Power Platform to manage different workflows and applications. Make sure you set up your environment correctly to allow AI Builder access.

b. Licensing Requirements

AI Builder is available through various licensing plans. Some key considerations include:

AI Builder credits: AI Builder functionality is credit-based, meaning you will need to have sufficient credits to use certain AI features. The credits are typically included in certain Microsoft 365 plans or Power Platform licenses.
Premium Features: Some features, such as advanced form processing, may require a premium license.

Be sure to check your licensing to ensure that AI Builder is available with your plan.

4. Using AI Builder for OCR and Document Parsing

Once you have access to AI Builder, you can start using it for OCR and document parsing.

a. Using the Text Recognition Model (OCR)

The Text Recognition model in AI Builder enables you to extract text from images and scanned documents. Here’s how you can use this model:

Create a Power Automate Flow: AI Builder integrates seamlessly with Power Automate. You can create a flow that triggers when a new document is uploaded to SharePoint, OneDrive, or another cloud storage platform.
Add the Text Recognition Action: In Power Automate, select the AI Builder action and choose Text Recognition. This will allow the flow to process the image or document to extract the text.
Configure Inputs: Provide the file or image for which you want to extract text. This can be done through dynamic content if the document is being processed from a particular folder or email attachment.
Process and Extract Text: Once the model processes the image or document, it will output the recognized text, which you can use further in your workflow. You can store this extracted text in a database, send it via email, or process it with other systems.

b. Using the Form Processing Model

For more advanced document parsing tasks, such as extracting specific fields (e.g., invoice numbers, amounts, dates), you can use the Form Processing model. Here’s how it works:

Create a Form Processing Model: In AI Builder, create a new Form Processing model. Upload a set of documents that are representative of the forms you want to process (e.g., invoices, contracts, purchase orders). The more varied your sample set, the better the model will learn to handle different layouts and field types.
Label the Fields: AI Builder will automatically analyze the forms and attempt to identify the key fields (e.g., invoice number, total amount, due date). You can manually label the fields if necessary, especially if the layout is complex or if automatic extraction isn’t perfect.
Train the Model: Once the fields are labeled, you can train the model. AI Builder uses machine learning to learn the patterns in the documents and how to extract the labeled data.
Test and Refine: After training, you can test the model on new documents to check how well it performs. If the model is not extracting the fields correctly, you can make adjustments by adding more sample documents, retraining, and refining the field labels.
Deploy the Model: Once the model is trained and refined, it can be deployed for use in Power Automate, Power Apps, or other workflows. You can create a flow that automatically processes incoming documents, extracting the required data and storing it in a database or taking further action.

5. Integrating OCR and Document Parsing into Business Workflows

Once you’ve set up your OCR and document parsing models, the next step is to integrate them into your business workflows. AI Builder integrates natively with Power Apps, Power Automate, and other Microsoft products, allowing you to build powerful solutions.

a. Power Automate Integration

Power Automate allows you to create automated workflows that integrate with various services and systems. Here’s how to use Power Automate with AI Builder:

Trigger Flows: Set up triggers (e.g., document upload, email receipt) to automatically start the OCR or document parsing process.
Process Documents: Use the Text Recognition or Form Processing actions in your flow to process documents as soon as they are uploaded or received.
Store Extracted Data: After extracting text or fields, you can send the data to a database (e.g., SharePoint, SQL Server, or Excel), email the results to users, or integrate with other business applications.
Approval Workflows: Use Power Automate to create approval workflows where users can review the extracted data before taking action.

b. Power Apps Integration

Power Apps allows you to create custom applications with minimal coding. Here’s how to integrate AI Builder with Power Apps:

Capture Document Inputs: Allow users to upload documents (e.g., invoices, receipts) via a custom app.
Display OCR Results: After processing the document with AI Builder, you can display the extracted text or data within the app.
Custom Data Display: Use the extracted data to update app interfaces, making it easier for users to view and act on the parsed information.

6. Best Practices for OCR and Document Parsing with AI Builder

Train with High-Quality Data: To improve the accuracy of OCR and document parsing, provide high-quality documents that represent the variety of documents you plan to process. This will help the AI model better recognize patterns and extract data accurately.
Handle Different Layouts: Ensure that your document samples cover a variety of layouts and formats. For instance, invoices may have different field placements, so a diverse set of samples will improve the model’s ability to generalize.
Regular Model Evaluation: Continually evaluate and refine your models based on new documents. If the model’s performance drops or you encounter new types of documents, retrain the model with fresh data.
Test Different Document Types: When dealing with different document types (e.g., invoices, contracts, receipts), consider creating separate models or adjusting your form parsing rules for each type.

7. Use Cases for OCR and Document Parsing

OCR and document parsing using AI Builder can be applied in many industries and scenarios, including:

Invoice Processing: Automatically extract invoice numbers, amounts, and dates from invoices.
Contract Management: Parse contracts to extract key terms, expiration dates, and clauses.
Expense Reporting: Parse receipts to extract item details, prices, and totals.
Healthcare: Extract patient information from medical forms and records.
Legal: Automatically extract important information from legal documents.

OCR and document parsing are powerful capabilities that can save organizations time, reduce errors, and streamline business processes. With AI Builder in the Power Platform, businesses can easily integrate these capabilities into their workflows without requiring advanced coding skills. By leveraging pre-built models for text recognition and form processing, users can quickly process documents, extract meaningful data, and take action automatically.

Whether you’re looking to automate invoice processing, extract customer data from forms, or digitize legacy documents, AI Builder offers an intuitive and efficient solution. With its low-code interface and seamless integration with Microsoft products, AI Builder makes document automation accessible to all organizations, regardless of their technical expertise. By following best practices and continuously refining your models, you can ensure that your OCR and document parsing solutions remain accurate and effective as your business grows.