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Trends in DMS

AI Vs. Manual Document Management: Which Is Better?

AI tools enable efficient document management so your business can conserve resources and your people can do more high-value work.

January 7, 2025

Person using automated tools on a computer

How does AI document management compare to manual processes?

It’s not difficult to see why AI automation tools have become the go-to for information processing. Document-centric processes that depend on rudimentary filing strain your workforce and drive up your overhead costs.

The routine workflows that power your business are the same ones that often bury your employees in monotony and take their time and attention away from more significant work. For teams in HR, Accounting/Finance, Legal, Operations, and other departments, time spent shuffling papers from Point A to Point B is time that can’t be recovered.

In a dynamic business environment where everything is in constant flux, you need a solid, consistent documentation flow. Manual systems are inflexible, while an AI-enabled document management system is an agile business process hub that unifies your data, workflows, and stakeholders.

Beyond digital record management, AI-driven systems have evolved to include security, auditing, analysis, and more. That means you’ll sync all your processes and the documents that power them with one powerful digital tool. This is how AI differs from manual document management and why the future of your business depends on it.

How do you access your data?

Manual systems lack accessibility and transparency. Searching for physical documents in file cabinets or navigating outdated digital folders is time-consuming and error-prone. When one department needs a document from another, they have to request it or figure out how and where it’s been stored. 

AI systems, on the other hand, offer complete visibility and seamless searchability. You’ll quickly locate documents with a simple search using keywords, metadata, or even contextual queries.

Think of manual document systems as finding a book in an unorganized library. With no catalog or clear labeling, you’re left wandering aisle after aisle. AI is the librarian who finds the book and has it ready for you to pick up at the front desk.

AI-powered platforms are also designed for interoperability, seamlessly integrating with your existing tech stack—HR software, accounting systems, industry-specific platforms, and more. This keeps your data flowing across departments, reducing silos and creating a unified, efficient system that keeps business running without you having to do manual data translation.

How do you spend your time?

Time is one of your organization's most valuable resources, and manual document processing is notorious for wasting it. Your AP staff, for example, spends critical time finding documents, reminding someone to complete an expense approval, or chasing down signatures.

In a conventional system, an AP clerk is like the librarian manually sorting and shelving books one by one. It’s time-consuming and leaves little room for anything else. AI is the automated book sorter—it quickly files everything in the right spot so your AP team can redirect focus to optimizing vendor relationships, identifying cost-saving opportunities, or implementing process improvements that enhance the company's financial health.

Intelligent document processing using AI eliminates inefficiencies with automated filing, organizing, and document tracking. Accelerating processing times enables everyone to do their jobs faster—your employees won’t stress out about lost or misplaced documents and won’t have to do duplicate work. Instead, they can focus on more stimulating activities, like analyzing trends, developing new strategies, or delivering better client service.

Teams free from tiresome busy work will be empowered to contribute to meaningful projects, and they’ll have the time to do it without needing to work overtime.

How do you collaborate?

Inefficiencies like version control issues, delays in approvals, and fragmented communication hamper collaboration in a manual environment. Like passing a book from one person to another, with each adding notes in the margins, it’s easy to lose track of versions, and some ideas or edits may get lost. With AI, it’s like everyone reading and annotating the same digital version in real-time, with changes tracked and saved automatically.

Automated workflows (designed to match your unique business processes) guide documents through processes without human intervention, sending reminders and notifications when action is required or due dates are coming up.

With AI, analyzing and optimizing your workflows becomes effortless. AI can quickly uncover insights you might otherwise miss, such as process bottlenecks or ideal tasks for automation. This allows you to fine-tune operations and eliminate inefficiencies. The result? Smoother collaboration, reduced friction, and greater alignment across departments, so your teams work more effectively together.

How do you direct resources?

In a manual document management system, employees have to complete tasks one by one: comb through documents for important data, extract that data, tag or categorize it, transcribe it, route the documents to other personnel, and file the paperwork in physical storage.

Now, imagine doing all this with a few clicks. AI is the modern library assistant, instantly cataloging new arrivals, flagging misplaced items, and freeing up librarians to make big decisions and engage with patrons.

Your staff’s expertise is far too valuable to waste on repetitive work. By automating these tasks, you can leverage their knowledge and experience for strategic planning, operational improvements, and ideas for growth. By freeing your team from tiresome manual processing, you’ll maximize their potential and boost engagement, reduce burnout, and create a more committed workforce.

A digital system with AI reporting capabilities also lets you monitor workflows as they happen and audit them whenever you see fit. You can set search parameters and generate an analysis on incomplete workflows, expirations, outstanding invoices, etc. Save your searches to run these reports automatically, catch and fix inefficiencies, and allocate resources where needed.

How do you practice governance?

For some businesses, proper records management and compliance are legal imperatives, but they don’t have to be something you stress over.

Managing compliance manually is like trying to enforce library late fees with paper reminders and sticky notes—it’s error-prone and chaotic. An AI-powered document library automatically tracks due dates, sends reminders, and generates reports on overdue items, ensuring every rule is followed without added effort.

Advanced document management systems have built-in features that integrate compliance rules into your primary workflows, so you can be sure you’re always in line with regulatory requirements.

Governance and file retention policies can be programmed into your document management system automatically. Audit trails also keep you ready for reporting. 

How do you stay competitive?

In a manual system, things are difficult to measure. When a to-do list and a basket on your desk are your primary project management tools, things can easily get backed up and cause you to fall behind. Performance is just based on the height of the stack or the length of the list. 

In a competitive environment, a library that doesn’t leverage technology will struggle to keep up with demand—serving people takes longer, lines form at checkout, and mistakes are made. An AI-powered library runs efficiently, offering instant access to information and making staff and visitors happier and more engaged.

AI drives insights to continuously optimize your document processes. Uncover trends and patterns and set your business up to scale without needing additional staff or tools.

AI tools for small business do the heavy lifting so you can focus on the details

Efficient document management fuels process automation. That means eliminating busy work, saving time and money, and improving your bottom line.

Manual document processes take time and effort and slow task execution. But AI document systems let you standardize the organization of your business information. You’ll increase productivity and reduce operational costs when everyone can easily access, route, and collaborate on documents.

When employees leave, they often take institutional knowledge with them, including how company information is stored, organized, and actioned. But when documents are automatically tagged and filed, the system is preserved even as new people come and go. Training is even quicker when your staff doesn't have to learn how to file or find information; they just ask, and it’s there for them. 

DocuXplorer comes with built-in features like AI Capture and Workflows—advanced tools that take your document management to the next level and let you redirect resources to high-level work. 

You can do more with less when you harness the power of AI document management. Ready to modernize your processes?

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