Have you ever wondered how text is recognized from images or scanned documents? OCR or Optical Character Recognition is the technology that enables computers to read and recognize text from images or scanned documents. In this article, we will take a comprehensive look at OCR, how it works, its applications, AWS OCR, top OCR applications, character scanners for OCR, and industries that use OCR the most.
Introduction
OCR technology has been around for decades, enabling the digitization of paper-based documents and facilitating the storage and processing of vast amounts of text-based data. However, the accuracy and efficiency of OCR systems were limited by their reliance on traditional rule-based methods. With the advent of Artificial Intelligence (AI) and Machine Learning (ML) technologies, OCR has undergone a significant transformation, enhancing its accuracy and speed.
AI-powered OCR systems are designed to learn and adapt to new data, enabling them to recognize and extract text from a wide variety of sources, including handwritten text, scanned documents, and images. By utilizing advanced algorithms, these systems can analyze and interpret images and text, providing highly accurate results in real-time. The incorporation of ML into OCR has revolutionized the field, enabling the development of systems that can automatically recognize and learn from new data, improving their accuracy and efficiency over time.
One of the primary benefits of utilizing AI and ML in OCR is their ability to process large amounts of data quickly and accurately. This is particularly useful in industries such as finance, healthcare, and legal, where vast amounts of data are generated every day. Additionally, AI-powered OCR systems can extract valuable insights and trends from data that would be difficult to discern using traditional OCR methods. This has enabled businesses to make data-driven decisions, improve operational efficiency, and gain a competitive advantage in their respective industries.
OCR is used in a wide range of applications, from digitizing printed documents to extracting text from images for machine learning purposes. OCR technology has come a long way since its early days, and it is now a critical component of many modern applications.
AI is a versatile and powerful technology that can be utilized for a wide range of applications. For another use of AI, read Jason Carlile’s article on The 13 Best AI Software for Developing Blog Posts, which highlights some of the top AI tools that can assist in developing blogs, articles, and content marketing.

How OCR Works
OCR is the acronym for Optical Character Recognition, which is a technology used to recognize and extract text from images and scanned documents. OCR works by using complex algorithms to analyze the image and identify patterns that represent letters, numbers, and other characters. Once the characters are identified, they are converted into digital text that can be edited, searched, and shared.
OCR codes are used to identify and encode the characters that are recognized by the OCR software. These codes represent the shape and size of each character, as well as its position within the image. OCR codes are used to train the OCR software to recognize specific fonts and styles of text. The software uses these codes to compare the image to a library of known characters and determine the most likely match.
This technology can be integrated with ERP (Enterprise Resource Planning) systems to streamline data entry and enhance accuracy in business processes.
The OCR process typically involves several steps, including:
- Preprocessing: The image is scanned or captured and then prepared for OCR processing by adjusting its brightness, contrast, and orientation.
- Text detection: The OCR software analyzes the image to identify areas that contain text.
- Character segmentation: The text areas are divided into individual characters, which are then analyzed and compared to a library of known characters.
- Character recognition: The OCR software uses OCR codes to identify the characters and convert them into digital text.
- Postprocessing: The recognized text is checked for accuracy and corrected if necessary. It is then formatted and saved in a searchable digital format, such as a PDF or Word document.
OCR technology has come a long way over the years, and today’s OCR software is highly accurate and can recognize text in multiple languages and fonts. OCR technology is widely used in various industries to digitize documents, automate data entry, and extract information from images and scanned documents.

AWS OCR
AWS OCR, or Amazon Web Services Optical Character Recognition, is a cloud-based OCR service provided by Amazon Web Services (AWS). It is designed to extract text from images and scanned documents and convert it into digital form for use in applications. AWS OCR is built on machine learning algorithms and is highly accurate, making it an ideal solution for applications that require precise text recognition.
AWS OCR is designed to be easy to use and integrate into your applications. It provides a simple API that allows you to submit images or scanned documents and receive the recognized text in a structured format. AWS OCR supports multiple languages and can recognize text in various fonts and styles. It can also handle low-quality images and documents, thanks to its advanced preprocessing capabilities.
One of the key advantages of AWS OCR is its scalability. Since it is a cloud-based service, it can scale to handle large volumes of images and documents, making it ideal for applications that require high-volume text recognition. AWS OCR can also be integrated with other AWS services, such as Amazon S3 and Amazon Textract, to provide a complete document processing solution.
Another advantage of AWS OCR is its security. AWS OCR uses encryption to protect your data in transit and at rest. It is also compliant with various industry standards, such as HIPAA and PCI DSS, making it suitable for use in industries with strict data privacy and security requirements.
AWS OCR pricing is based on the number of images or scanned documents processed, with a free tier available for up to 1,000 images per month. The pricing is competitive and offers various pricing options depending on your specific use case and volume.
AWS OCR is a powerful OCR service that provides accurate text recognition, scalability, and security. It is designed to be easy to use and integrate into your applications and supports multiple languages and fonts. If you require a cloud-based OCR service, AWS OCR is definitely worth considering.

7 Best OCR Software Applications
OCR technology is widely used in various industries, from healthcare to banking and finance, to digitize and process text from images or scanned documents. Here are some of the top OCR applications available today:
Adobe Acrobat
Adobe Acrobat is a popular PDF editor that includes OCR functionality. Adobe Acrobat OCR allows you to recognize and extract text from scanned PDF documents, making it easy to edit, search, and share the information within the document.
ABBYY FineReader
ABBYY FineReader is a leading OCR software that provides advanced text recognition capabilities and supports multiple languages. ABBYY FineReader OCR software is designed to convert scanned documents, PDFs, and digital images into editable and searchable formats.
Tesseract OCR
Tesseract OCR is an open-source OCR engine that was initially developed by HP Labs and later maintained by Google. Tesseract OCR is designed to recognize text in images and scanned documents, and it supports multiple languages and scripts.
If you are interested in Open-Source Software, then read our recent article about the best Open-Source ERP systems.
Google Drive OCR
Google Drive OCR is a free OCR service that is integrated into Google Drive, enabling users to extract text from images or scanned documents. Google Drive OCR is a simple and easy-to-use OCR solution that supports multiple languages and can recognize text in various fonts and styles.
Microsoft Office OCR
Microsoft Office includes built-in OCR functionality that allows you to recognize and extract text from images or scanned documents. Microsoft Office OCR is integrated into several Office applications, including OneNote, Word, Outlook and Excel.
Write your own VBA code to process OCR in Excel for free.
Evernote
Evernote is a note-taking application that includes OCR functionality. Evernote OCR allows you to recognize and extract text from images or scanned documents, making it easy to search and organize your notes.
ABBYY FlexiCapture
ABBYY FlexiCapture is a powerful OCR and data capture software that is designed to automate document processing tasks. ABBYY FlexiCapture can recognize and extract text from various types of documents, including invoices, forms, and surveys, and it supports multiple languages and can handle large volumes of documents.
In addition to these top OCR applications, there are many other OCR software solutions available today, each with their own unique features and capabilities. Whether you need to convert printed documents into digital form, extract data from forms, or search for text within images, there is an OCR solution that can meet your needs.
Character Scanners for OCR
Character scanners are specialized devices that are designed to scan images or documents and extract text using OCR technology. Character scanners can be standalone devices or integrated into other systems, such as multifunction printers.
Some of the top character scanners for OCR include:

These scanners offer fast and accurate scanning, multiple connectivity options, and OCR software to convert scanned documents to digital text. The price of each scanner varies, with the Fujitsu ScanSnap iX1500 being the most expensive but also offering the most features and high-quality scanning results. The Brother ADS-1700W is the most affordable option while still offering reliable scanning and OCR capabilities.
Applications of OCR
OCR has many applications in various industries, including:
- Digitization of printed documents: OCR is used to convert printed documents into digital form, making it easier to store, search, and edit them.
- Data extraction from forms: OCR is used to extract data from forms, such as invoices or surveys, to automate data entry and reduce errors.
- Automatic license plate recognition: OCR is used in automatic license plate recognition systems to read license plates on vehicles for law enforcement or parking enforcement purposes.
- Image search: OCR is used to extract text from images for image search purposes, enabling users to find images based on the text they contain.

Industries That Use OCR the Most
OCR technology is used in a wide range of industries to automate data entry, digitize documents, and extract information from images and scanned documents. Here are some of the top industries that use OCR the most and how they use it:
- Healthcare: OCR is widely used in healthcare to digitize medical records, prescriptions, and other documents. By using OCR, healthcare providers can easily store, search, and analyze patient information, resulting in more efficient and accurate healthcare services. OCR is also used in medical billing and coding to automate data entry and reduce errors.
- Banking and Finance: OCR is used in banking and finance to automate data entry, process forms, and extract data from financial statements and invoices. OCR is also used in loan processing to extract information from loan applications and process them quickly and accurately. In addition, OCR is used in fraud detection to identify and prevent fraudulent activities.
- Retail: OCR is used in retail to process invoices, receipts, and shipping documents, and to automate inventory management. OCR is also used in price comparison apps and websites to extract product information from images, making it easier for customers to find the products they need.
- Legal: OCR is used in the legal industry to digitize legal documents, automate data entry, and process court filings. OCR is also used in e-discovery to extract relevant information from large volumes of documents.
- Government: OCR is used in the government sector to digitize and process documents, such as passport applications, tax forms, and voting ballots. OCR is also used in law enforcement to extract information from license plates and process parking violations.
- Education: OCR is used in education to digitize and process student records, transcripts, and other documents. OCR is also used in academic research to extract information from scholarly articles and books.
- Insurance: OCR is used in the insurance industry to automate data entry, process claims, and extract data from insurance applications. OCR is also used in fraud detection to identify and prevent fraudulent claims.
OCR technology is widely used in various industries to automate data entry, digitize documents, and extract information from images and scanned documents. By using OCR, organizations can improve their efficiency, accuracy, and data processing capabilities, leading to better services and increased productivity.
Conclusion
OCR is a critical technology that enables computers to read and recognize text from images or scanned documents. OCR has many applications in various industries, including healthcare, banking, retail, and legal. AWS OCR and top OCR applications provide advanced text recognition capabilities, while character scanners for OCR are specialized devices that can scan images or documents and extract text. As OCR technology continues to advance, it is likely to become even more widespread and powerful, transforming the way we interact with and process visual information.
About the Author
I’m Jason, a certified technical IT project and program manager with over 20 years of experience. I hold a Master of Liberal Arts in Management from Harvard University and have managed teams of 100+ personnel and assets worth over $100 million.
I am also dedicated to volunteer work and advocacy, serving as a Director and Secretary of the Board for the Greenwood Association of Apartment Owners and collaborating with the Harvard Graduate Council’s External Advocacy Committee while a graduate student at Harvard.
Through this blog, I hope to share my expertise in small business, entrepreneurship, project management, and especially SEO and affiliate marketing.