The Ultimate Guide to Document Workflow Automation [+ Examples]

How Can You Automate Document Workflows?

Document workflow automation involves using advanced technologies and methods, such as Artificial Intelligence (AI) and Robotic Process Automation (RPA). They help create intelligent systems that can understand, categorize, and process documents with minimal human intervention. 

AI systems can learn from their past experiences and improve their accuracy over time, becoming increasingly effective at handling documents. RPA systems, on the other hand, act based on pre-defined rules. As opposed to AI, they can’t learn new rules on their own simply by observing data. So, AI systems are a step up from RPA systems.

Businesses can further integrate such systems with other software, such as CRM and ERP software, and enable wider-scale document workflow automation. That way, the data can flow between systems, reduce the need for manual data entry, and increase overall data integrity.

Example of Document Workflow Automation: Finance Industry

Finance companies typically have one of the most document-heavy workflows. 

Banks, insurance companies, and mortgage companies, for example, deal with a plethora of documents every day, from bank statements and paystubs to insurance files.

Using document workflow automation tools, like Document AI, can help them automatically classify such documents, extract data from them, and normalize that data for easy review.

What Are the Benefits of Document Workflow Automation?

Automating document workflows offers numerous benefits, including:

• Increased operational efficiency through the reduction of manual and repetitive tasks.
• Improved accuracy and consistency in document handling and data extraction.
• Enhanced regulatory compliance due to better document traceability and adherence to protocols.
• Streamlined collaboration and communication within and between departments.
• Greater scalability, allowing businesses to handle increased volumes of documents without added strain on resources.
• Improved employee satisfaction. Employees can focus on more strategic and fulfilling work, while automation solutions handle repetitive tasks. 
• Better decision-making capabilities. Accurate and readily accessible data enables leaders to make informed decisions more quickly.
• Enhanced customer experience. Accelerating business processes often leads to faster responses and resolutions, increasing customer satisfaction.
• Reduction in environmental impact. Reducing paper-based business processes supports sustainability initiatives.
• Cost savings. Cost savings result from two factors: (1) decreased need for human effort, and (2) reduced paper consumption and storage.

3 Steps to Successful Document Workflow Automation

Here are three critical steps to take before integrating automation solutions into workflows.

Step 1: Create a Plan

Developing a robust plan is the cornerstone of successful document workflow automation. It involves assessing current document handling processes, identifying bottlenecks, and determining the objectives of automation. It involves asking questions like:

• Who needs access to documents within the organization?
• What types of documents do we typically deal with?
• What type of document tasks do we typically perform?

This stage is crucial for setting the foundation for subsequent steps. Clear objectives, for example, can guide the selection of technologies and processes. 

For example, if your goal is to increase accuracy, you may want to go with a more expensive or custom large language model. Alternatively, if the main objective is to accelerate your workflow, you’ll want to look for models with fast inference times.

Step 2: Determine What Document Tasks to Automate

Next, identify which document-related tasks are ripe for automation. Here, it’s important to weigh the complexity of the tasks against the potential benefits of automation. 

One document task can be significantly different from another one. For example:

Simple, repetitive tasks that require little human judgment are typically ideal candidates for automation. However, even more complex tasks can often be automated with more advanced systems, like those powered by AI.

Assessing the potential return on investment (ROI) for automating specific tasks can also guide decision-making. Look at factors such as the volume of documents processed, the time taken for manual processing, and the costs associated with errors and delays. This will help prioritize tasks for automation based on their potential to contribute to cost savings and efficiency gains.

It's also crucial to consider how the automated tasks will fit into the larger ecosystem of the organization's workflows. Proper integration ensures that automated tasks complement existing processes and contribute to the seamless operation of the business.

Step 3: Find the Right Document Automation Solution

Finally, the last step is choosing the right document workflow software. You should consider:

• Whether a solution meets your specific business requirements
• How easily you can integrate it with current systems
• The level of customization different solutions offer
• Technical support and security that comes with different solutions
• Scalability — a good document automation tool should not only fit well with your current operations but also be able to grow with your business and adapt to future needs.
• User experience — your solution should be as easy to use as possible, so your employees don’t need to go through grueling training before using it.
• Robust data analytics capabilities — the ability to track and analyze the performance of your document workflow can help you pinpoint areas for improvement and quantify the benefits of automation.

You can also conduct a pilot program with a shortlist of potential solutions. This allows your team to test the functionality and performance of each tool in a controlled environment, ensuring that the chosen solution can meet the demands of your document workflows.

For example, our clients can pay a small Proof of Concept fee to get a prototype of Document AI trained on their documents and custom schema. That way, they can check its accuracy first-hand.

5 Best Solutions for Document Automation

Here, we’ll compare the pros and cons of some of the best document workflow automation solutions.

1. Document AI

Unlike any other solution on this list, Document AI is completely custom to every business. Rather than offering a ready-made solution, we build it specifically for your custom schema and documents. 

It’s also incredibly versatile. We can train it to handle any type of document, from receipts to bank statements, and perform any document task relevant to your business. This can include anything from document classification to data normalization.

Finally, we either host the solution on our cloud or integrate it with your other systems, depending on what matters more – wider-scale automation or cost-efficency?

Pros:

• Trained on your data
• Customized for your specific use case
• Able to learn on its own thanks to machine learning capabilities

Cons:

• Requires bigger investment than ready-made solutions

2. DataSnipper

DataSnipper simplifies data extraction and cross-referencing between documents and Excel data. It has a user-friendly interface and performance metrics dashboard, which can come in handy. Cross-referencing helps maintain data integrity and accuracy; performance metrics help optimize your workflow.

However, DataSnipper is by and large focused solely on Excel. It works as an Excel add-in and requires users to import documents, such as PDFs or images, into Excel in order for it to work. 

Once the documents are imported, DataSnipper can identify, extract, and reconcile data found in those documents.

Pros:

• Automates critical document tasks
• Easy to use

Cons:

• Not customized for different use cases
• Low versatility
• Poor integration capabilities

3. Docsumo

Docsumo is an AI platform that automates a number of document processing tasks, including document classification and data extraction. It offers a satisfying level of versatility, allowing users to send documents via emails, API, cloud drive, or local machine and process unstructured data, too.

Customers can choose between using pre-trained models and training the models on their data. While this is a great option to have, not all businesses are ready to train AI models themselves. It requires significant technical expertise, not to mention time-consuming — data preparation alone, for example, can take months. 

Still, Docsumo probably offers a satisfying level of accuracy even when powered by pre-trained models.

Pros:

• Very versatile
• Good integration capabilities
• Machine learning capabilities

Cons:

• Only a DIY, and no done-for-you customization option
• Can’t be adapted to other use cases by users
• Can’t be hosted on company infrastructure

4. PandaDoc

PandaDoc offers an all-in-one document automation solution that streamlines the creation, distribution, and electronic signing of documents. It's particularly useful for teams looking to enhance their document workflow while maintaining brand consistency.

The platform provides a range of templates and customization options, enabling businesses to create professional, branded documents quickly. Its electronic signature feature also expedites the approval process, making it easier to close deals and finalize agreements.

With that said, PandaDoc is probably not the best solution if you’re looking for a more robust and feature-rich tool. It may not be suitable for companies with document-heavy workflows, or those who need ways to extract and preserve important data.

Pros:

• Drag-and-drop document builder
• Intermediate integration capabilities (native CRM integrations)

Cons:

• Document creation is template-based
• Doesn’t seem to have any document classification or data extraction capabilities

5. Avokaado

Avokaado could be described as a contract management system, providing a secure and efficient way to manage contracts from creation to execution. Its focus on collaboration and integration with external systems makes it a good choice for industries that rely heavily on contractual agreements.

It simplifies contract management by automating the drafting, negotiation, approval, and storage of contracts. Its centralized system ensures that all parties have access to the most up-to-date versions of documents, reducing the risk of miscommunication and errors.

The platform's dynamic template library and clause library also make it easy to build contracts using pre-approved content. However, if you’re looking for a more multi-purpose solution — i.e., need to automate other document tasks, and not just those pertaining to contracts — you should probably choose another one.

Pros:

• Helps streamline content management 
• Semi-flexible integration capabilities

Cons:

• Doesn’t support other document types
• Contact drafting is based on ready-made templates and may lack personalization

Get Your Custom Document Automation Tool Today

The right automation tool can transform your document management system — and make you drastically more efficient. To get those results faster, choose a tool that adapts to your needs, like Document AI.

Instead of coming ready-made, Document AI is entirely customized for your specific workflow and trained on your data by our experts. Development takes as little as 6 to 8 weeks. 

See how it works live today.