IDP News: February 2026

The intelligent document processing market underwent a fundamental transformation this period: agentic AI systems evolved from document extraction to autonomous decision-making workflows. LlamaIndex's Agentic Document Workflows now process over 500 million documents with 90%+ automation rates, while Convr's agentic AI delivers 97% accuracy with 30-second processing for commercial P&C insurance. This represents a decisive shift from traditional OCR to intelligent document understanding that makes decisions, not just extractions.

Welcome New Vendors

We welcome Pulse and Caya to our vendor directory, representing the growing diversity of specialized agentic document processing solutions targeting enterprise automation workflows.

Revolutionary AI Architectures Disrupt Traditional OCR

The market witnessed breakthrough innovations that fundamentally challenge legacy approaches. DeepSeek-OCR 2's Visual Causal Flow architecture achieved 91.09% accuracy on OmniDocBench while mimicking human vision patterns rather than sequential scanning. Mistral's OCR API processes 2,000 pages per minute at $1 per 1,000 pages—a 28x cost advantage over legacy OCR licenses costing $5,000-20,000 upfront.

ACTFORE's patent for pixel-level document fingerprinting enables structural pattern recognition across massive datasets, processing over 1 million files per hour. As Sanskriti Shivhare noted, "Template intelligence is the missing link in scalable document analysis. When a system understands a document's shape—not just its text—it unlocks powerful automation."

Traditional OCR vendors must transform or face obsolescence. ABBYY's consecutive IDC MarketScape Leader recognition demonstrates that market leadership requires continuous AI platform evolution, not legacy optimization. Winners embrace semantic understanding; losers cling to character recognition.

Agentic AI Achieves Autonomous Enterprise Workflows

Beyond extraction accuracy, agentic systems demonstrated autonomous decision-making capabilities. Convr's agentic AI workflow agents process 85 million business records for autonomous underwriting, while Checkbox AI's $23 million Series A validates autonomous legal workflow automation serving 100+ enterprises including SAP, PepsiCo, and Hitachi.

Indico Data's Agentic Decisioning Platform processes 120+ product lines across 900+ document types, with customers reporting 80% reduction in manual processing and 4x increase in submission handling capacity. As Tom Wilde noted, "This is the moment the industry shifts from automation to autonomy. Agentic Decisioning isn't just about efficiency – it is about enabling the insurance enterprise to operate with real-time intelligence, at scale."

The mortgage processing vertical exemplifies this transformation. Ocrolus launched Encore platform for SMB funding data sharing, while industry-wide adoption of AI-powered conditioning reduces processing time by 60-70% with 99.5-99.9% accuracy rates. Agentic systems don't just extract data—they orchestrate entire business processes autonomously.

Vertical Specialization Commands Premium Valuations

Industry-specific platforms attracted significant funding and acquisition premiums. Cognaize raised $18 million Series A for neuro-symbolic AI in financial services, while SortSpoke secured $4.5 million for insurance-specialized processing. DataSnipper delivered $1.4 billion in productivity savings across audit and finance teams, validating vertical-focused strategies.

These specialists demonstrate that deep domain expertise creates defensible competitive moats. Generic platforms struggle to match the workflow integration and regulatory compliance that specialized vendors deliver in regulated industries requiring healthcare document processing or insurance claims automation. Convr processes 85 million business records for autonomous underwriting, while Indico Data reports 80% reduction in manual processing across 120+ product lines.

The contract analysis market reached $3.61 billion in 2024, projected to $11.95 billion by 2033, with corporate legal AI adoption doubling from 23% to 54% in 2025. Vertical specialists capture premium valuations by solving complete industry workflows rather than generic data extraction.

Strategic Consolidation Accelerates Platform Integration

Strategic acquisitions reshaped competitive dynamics around comprehensive platforms. SER Group rebranded to "Doxis" following three 2025 acquisitions (Klippa, AFI Solutions, Metaforce), positioning as "The Document Intelligence Company." Caseware acquired Extractly.ai for audit automation, while Document Logistix was acquired by Netherlands-based Whitevision for international expansion.

The consolidation pattern favors buyers seeking integrated platforms over multiple point solutions. Metamaze's acquisition by Duco demonstrates continued market consolidation as point solutions integrate into broader data automation platforms. Enterprise AI budgets face scrutiny, creating advantage for comprehensive document intelligence platforms with proven ROI metrics.

Box launched Extract AI agent for document extraction, directly challenging traditional IDP vendors through existing enterprise relationships. As Aaron Levie noted, "The future of enterprise AI will be defined by intelligent agents that can work together across systems."

Enterprise Platforms Embrace Multi-Model Orchestration

Major vendors responded with comprehensive AI platform integrations. Google Cloud integrated Gemini 3 Pro across Document AI processors while expanding file support to DOCX/PPTX/XLSX formats. Kodak Alaris launched Info Input Solution 7.5 with native integrations to Google Gemini, AWS Bedrock, and ChatGPT, acknowledging that no single AI system optimally handles all document classification types.

This multi-model orchestration acknowledges that specialized AI routing based on document characteristics delivers superior results than monolithic systems. Retarus rebuilt its IDP platform on unified Large Language Model using Mistral Small, replacing document-specific models with centralized European AI infrastructure. The industry evolves toward intelligent model selection rather than one-size-fits-all approaches.

Regulatory Convergence Drives Compliance Automation

Regulatory pressure intensified across multiple jurisdictions. Twenty U.S. states now enforce comprehensive privacy laws, while the EU AI Act reaches full enforcement August 2, 2026, with penalties up to €35 million. Intellect AI achieved ISO/IEC 42001:2023 AI management certification, positioning among elite FinTechs with comprehensive governance frameworks.

Manual document workflows cannot maintain continuous oversight at this scale. Veriff achieved 100% detection rate of synthetic fraudulent documents across nearly 30,000 specimens, addressing AI-generated fraud as synthetic documents become major threats. The market rewards platforms embedding security and compliance capabilities rather than treating them as afterthoughts.

The Verdict

The document processing market crossed a decisive threshold from extraction to autonomous intelligence. Agentic AI systems that make decisions, orchestrate workflows, and handle exceptions autonomously represent the new competitive standard. Organizations still evaluating "AI pilots" risk strategic obsolescence as the technology has matured beyond experimentation to production deployment with measurable ROI.

The combination of 90%+ automation rates, 28x cost reductions, and autonomous workflow capabilities creates unprecedented competitive pressure. Traditional OCR vendors must transform their architectures or face acquisition by AI-native competitors. As Tim Law noted, "Those organizations that can efficiently extract text and embedded images with high fidelity will unlock value and gain competitive advantage." The winners will be platforms combining agentic AI orchestration, embedded compliance automation, and vertical workflow specialization.

349 vendors tracked by Intelligent Document Processing