AI and Document Processing
5 min read
What Is OCR? How It Works, Types, Applications, and Limitations
A complete guide to optical character recognition for business use: what OCR is and how it differs from scanning, the six stages of the recognition pipeline from image capture to field validation, the seven main types including ICR, OMR, MRZ reading and barcode reading, where OCR is applied in accounts payable, medical claims, identity verification, logistics and manufacturing, the practical limits of the technology, and how AI extends OCR without replacing it.