Nearly two-thirds of large enterprises are accelerating intelligent document processing projects as artificial intelligence transforms how organisations handle unstructured documents, according to new research.

The survey of 600 US and European organisations found 65 per cent are actively considering or implementing new IDP initiatives, with productivity gains rather than workforce reduction driving adoption.

However, the research revealed a paradox in digital transformation efforts: 61 per cent of IDP processes still involve paper, and 48 per cent of respondents expect their paper use to increase.

"Despite significant digital transformation efforts, paper remains entrenched in business processes," the study found. European firms anticipate a 50 per cent drop in paper use within the next year, while US companies expect only a 30 per cent reduction.

The research, conducted by the Association for Intelligent Information Management with Deep Analysis and co-sponsored by SER Group, surveyed organisations with revenues exceeding $US10 million and more than 500 employees.

Front-office applications lead growth

The study identified a shift from traditional back-office functions like invoice processing to front-office use cases including HR files, contracts, licences and permits, and customer onboarding.

Respondents cited reduced processing time as the biggest benefit (50 per cent), rather than headcount reductions (30 per cent), positioning IDP as a productivity enhancer rather than a workforce reduction tool.

However, implementation faces significant barriers. More than 50 per cent of respondents reported shortages of technological expertise and process redesign skills, while data security and privacy concerns topped the list of adoption challenges.

Skills shortage hampers adoption

The research highlighted the need for organisations to invest in change management and cross-functional training to maximise return on investment from IDP implementations.

Integration challenges ranked as the second-biggest barrier, underscoring requirements for interoperable standards and embedded IDP capabilities within existing enterprise systems.

The study also found that generative AI-powered research has overtaken traditional references and analyst reports as the leading method for selecting IDP solutions, though proof-of-concept testing and industry-specific expertise remain essential in purchasing decisions.

The research indicates that 78 per cent of surveyed organisations already use some form of AI, confirming IDP as an established enterprise use case for artificial intelligence adoption.