Optical Character Recognition – A Tool for the Future


Optical Character Reading (OCR) is the solution that is used mainly for data extraction. OCR has uses to scan characters from different documents to process the data in the form of characters or alphabets.

It is used by most online service providers, even mobile phones are now efficient enough to provide OCR facilities to users to extract data from the documents of the clients, According to the research,it technology holds a total of 14% of the market share today, It expects that the market revenue of it systems will reach about $12.6 billion by 2025.

What is OCR?

An it program processes and extracts text data in the form of characters from images, scanned documents, and pdfs. It is a system that uses a combination of different hardware and software technologies to scan writing and fonts in different documents and images. 

OCR system can also convert the scanned text into machine-readable format files. The it technology is evolving with many new features implemented such as bar-code scanning and check-box identification in many optical reading processes. Many new systems use AI to identify handwritten text and convert it into machine characters from different images and papers. Those systems name it as ICR (Intelligent Character Recognition)

History of Character Recognition Application

Optical Character Reading (it) which is also refers to as text recognition technology. It is the method that was introduced to the world in the late 1920s, by Emmanuel Goldberg who invented a system that can read and convert text characters into the telegraph code; the system makes later updates to the complete electronic document retrieval system.

After the successful implementation of the electronic conversion system, the technology was later improves when in the 1970s, Ray Kurzweil started working on OCR within his firm named Kurzweil computer products inc. The OCR technology picked up pace when it successfully identified the text in several written formats. 

Later in the 1990s, the text recognition technology was well equipped for several scanning tasks such as extracting data from newspapers and other printed documents.

OCR Service: Complete Process

The OCR process performs with various hardware and software dependencies which can affect the rate of scanning and conversion of text. The OCR process lifecycle consists of the following steps:

  • Document Scanning Phase

The first part of every OCR recognition process is to detect the type of data it needs to process. The document scanning speed affects the type of electronic device being use for capturing digital copies of the data from the document.

  • Text Extraction Phase

The recognizing phase executes after the scanning phase; it works to interpret the captured images to identify the text inside of those digital copies of data.

  • Text Verification or Correction Phase

The AI system then verifies the interpreted data by looking at the dictionary for the correct characters within the document. It uses intelligent scanning to examine the type of alphabet printed on the document.

  • Electronic Conversion into Machine Readable format

The OCR cycle completes when the data converts into a machine-readable format. The system then processes the extracted text for further operations.

Advantages of OCR Text Recognition

OCR technology has many benefits of reducing the work rate for different data extraction tasks. Today mobile OCR has provided complete access to scanning and reproducing new data from older documents by using the smartphone camera as the device for detection.

OCR systems improve efficiency, reduce time and cost and provide accurate data to businesses.

These are the top three uses of Optical Character Recognition technology:

  1. Improves Users Accessibility

With the new technology of AI, OCR systems are becoming smarter every day. It provides several accessibility tools to extract and process the data from boards, posters, papers, or any other piece of visual documents.

  1. Automates the Data Entry Tasks

Data entry tasks are very time-consuming and costly when it comes to handling multiple types of data at once. OCR solutions provide an easy way to automate the data entry tasks from any type of document, it reduces time and improves efficiency as the machines use different methods of correctness when extracting data from original sources.

  1. Helps in Data Classification

Another main feature of OCR is the classification of extracted text in different categories of data. The OCR system can identify the different types of information such as plain text, mathematical calculations, tables, and charts.


The OCR system is an efficient form of technology that develops back in the past; it is getting itself renowned as it provides accurate character recognition results. Many service providers use OCR in several performance and security measures such as KYC checks and identity verification from different legal documents. The OCR systems help in increasing the workflow of the processes which are going to be more functional in the coming future.


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