Extracting text from images is essential for businesses dealing with scanned documents, handwritten notes, invoices, receipts, and business cards. Manually entering data from images is slow, error-prone, and inefficient.
With AI Builder and Power Automate, businesses can automate text extraction from images using Optical Character Recognition (OCR). This saves time, reduces human errors, and improves data processing efficiency.
1. Why Extract Text from Images?
Manually extracting text from images can be challenging, especially when dealing with large volumes of scanned documents. Automating this process with AI Builder and Power Automate provides several benefits:
Saves Time – Automates text extraction from scanned documents and handwritten notes.
Reduces Errors – Eliminates manual data entry mistakes.
Improves Productivity – Employees can focus on higher-value tasks.
Enhances Data Processing – Extracted text can be stored, searched, and analyzed easily.
Example: A retail business automatically extracts product details from receipts and stores them in a database for tracking expenses.
2. How AI Builder and Power Automate Work Together
AI Builder’s Text Recognition (OCR) model enables Power Automate to extract text from images and PDFs in an automated workflow.
AI Builder OCR Capabilities:
- Extracts text from printed and handwritten documents.
- Recognizes text in multiple languages.
- Converts scanned invoices, business cards, or forms into digital data.
- Works with images, PDFs, and scanned documents.
Example: A logistics company extracts tracking numbers from shipment labels and automatically updates delivery status in a database.
3. Step-by-Step: Extracting Text from Images with AI Builder and Power Automate
Step 1: Enable AI Builder OCR Model
1️⃣ Open Power Apps and go to AI Builder.
2️⃣ Select Text Recognition (OCR) from prebuilt AI models.
3️⃣ Click Use in Power Automate to integrate it into a workflow.
Step 2: Create a Power Automate Flow
1️⃣ Open Power Automate and create a new Automated Cloud Flow.
2️⃣ Select a trigger, such as:
- “When a new email arrives with an attachment” (Outlook).
- “When a file is created” (SharePoint, OneDrive, or Dataverse).
- “When an image is uploaded” (Power Apps or Forms).
3️⃣ Add an AI Builder action: “Extract text from an image or PDF”.
4️⃣ Upload or reference the image/PDF file from the trigger source.
Step 3: Process Extracted Text
1️⃣ Store extracted text in SharePoint, Dataverse, or an Excel file.
2️⃣ Use conditions to check for specific words or phrases in the extracted text.
3️⃣ If needed, trigger an approval or notification workflow based on the extracted data.
Example: If a contract document contains the word “Confidential”, Power Automate alerts the legal team for review.
Step 4: Automate Data Entry and Reporting
1️⃣ Save extracted text in a structured database for analysis.
2️⃣ Use Power Automate to generate reports or dashboards in Power BI.
3️⃣ Enable searchable document storage with metadata tagging.
Example: A finance team automatically extracts amounts from invoices and updates a budgeting system.
4. Real-World Use Cases of AI Builder OCR
Invoice and Receipt Processing
Challenge: Manual invoice data entry is time-consuming.
Solution: AI Builder extracts invoice details, and Power Automate sends them to an accounting system.
Business Card Digitization
Challenge: Manually entering contact details from business cards.
Solution: AI Builder reads business card text, and Power Automate saves it in a CRM (like Dynamics 365 or Salesforce).
Legal Document Processing
Challenge: Manually reviewing contracts for key terms.
Solution: AI Builder extracts contract details, and Power Automate flags critical clauses for legal review.
5. The Future of AI-Powered Text Recognition
Upcoming Trends:
More Advanced Handwriting Recognition – Improved AI for handwritten text.
Real-Time OCR with Mobile Apps – Instant text extraction from phone cameras.
AI-Powered Searchable PDFs – Automated indexing of scanned documents.
Deeper Integration with Business Apps – Seamless AI-powered workflows in ERP, CRM, and document management systems.