Automating Purchase Order OCR with Artificial Intelligence

Sanam Malhotra | 7th August 2020

For businesses receiving tons of purchase orders monthly, data entry and management become labor-intensive and expensive. Purchase order OCR powered by Artificial Intelligence (AI) opens new opportunities for enterprises to minimize manual intervention while ensuring accuracy.

As a well-established AI Development Company, we at Oodles, demonstrate how machine learning streamlines OCR for cost-efficient purchase order digitization.


How Machine Learning Improves Traditional Purchase Order OCR

Traditional OCR systems fail terribly at identifying and working with different templates and layouts. The data extraction process forces human intervention to set new template rules for every different type of document.

While traditional OCR demands human intervention to adjust templates, AI employs deep learning technology for automated data capture and extraction.

Major challenges faced in traditional OCR for purchase order digitization are-

a) Unstructured layout, format, and key values representation

b) No support for multiple languages, and

c) Inability to classify texts in different fields and to match them with stored data

We, at Oodles AI, combat traditional OCR challenges by deploying advanced AI tools and technologies such as Google-owned Tesseract OCR engine. We automate purchase order OCR with machine learning and deep learning technologies to capture, extract, and classify complex data in different formats.


purchase order OCR-AI


AI-driven OCR scanning services enable businesses to drive operational efficiency, improve accuracy while automating critical OCR tasks such as-

a) Identifying different layouts, document structures, fields like vendor name, contact, delivery due date, etc.

b) Finetuning document anomalies like blurred images, low contrast, typos, or uneven surfaces.

c) Extracting output in multiple file-formats including XML, TSV, PDF, HTML, JSON, and other formats.

d) Lowering down operation cost and time with trained deep learning models

Also read | AI-OCR for Invoice Processing: Automating Accounts and Payments


AI Tools & Technologies Used for Purchase Order OCR

With the advent of AI, markets are sprawling with training-based OCR tools to streamline invoice processing, purchase order, and receipt digitization. Here are some latest AI-based tools and technologies for businesses to consider-

1) Tesseract OCR

An open-source OCR engine, Tesseract has gained significant traction among businesses recently. Tesseract automates data extraction from printed documents, scanned copies, and images with dynamic features like-

a) Flexible training options

b) Line finding algorithms

c) Automatic baseline fitting

d) Word recognition, and

e) Adaptive classifier for easier recognition of different font styles

AI OCR scanning services for aadhaar cards

The Oodles AI team recently build a POC model for automating data extraction and classification from identity cards using Tesseract OCR. Having achieved over 98% accuracy, the model is effective for automating eKYC, digital onboarding, and other labor-intensive business functions.


2) OpenCV

OpenCV (Open Source Computer Vision) is an open-source machine learning library of programming functions that provides APIs for real-time computer vision applications. OpenCV’s EAST Text Detector is used for text recognition for the OCR process. A combination of Tesseract OCR, OpenCV, and Python is emerging as a powerful trio to detect and classify text in complex documents.

openCV ocr purchase order

The LSTM (Long Short Term Memory) algorithm enables OCR systems to predict the next word in digitized copies efficiently.

Also read | How-to Guide: Deploying Tesseract OCR With Python and OpenCV


3) Google Cloud Vision API

A proprietary software option, Google Cloud Vision facilitates image analysis in the cloud. Though originally developed for face and logo detection, the software is constantly evolving to feature text detection from real-world images and handwritten documents. Text annotations are a distinctive function of Google Cloud Vision that represents a hierarchical extracted structure constituting page, block, paragraph, word, and symbol.

Also read | AI-powered Receipt Digitization with OCR Systems for Businesses


Oodles AI: Your Automation Partner for Purchase Order OCR

Amid the looming economic crisis, automated OCR is an essential cost-cutting tool for businesses. We, at Oodles, enable manufacturing, logistics, healthcare, pharmaceutical, and other business sectors to embed AI-driven automation at the data entry level.

We simplify, accelerate, and optimize OCR processes with our machine learning capabilities.

Our AI team deploys robust machine learning tools to extract data from complex documents for streamlining modern business processes, such as-

a) eKYC solutions

b) Digital onboarding

c) Healthcare data management

d) Invoice processing and receipt digitization, and more

Team up with our AI specialists to explore how we can amplify your business growth with adaptive automation solutions.

About Author

Sanam Malhotra

Sanam is a technical writer at Oodles who is currently covering Artificial Intelligence and its underlying disruptive technologies. Fascinated by the transformative potential of AI, Sanam explores how global businesses can harness AI-powered growth. Her writings aim at contributing the multidimensional values of AI, IoT, and machine learning to the digital landscape.

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