Form processing with AI Builder: extract data automatically

Introduction and Overview

Form processing has become a key part of how businesses run today, helping organizations quickly extract and organize data from all kinds of documents. In the past, this work meant a lot of manual data entry—something that could easily lead to mistakes, bottlenecks, and higher costs. Thanks to advances in artificial intelligence and automation, companies can now take advantage of tools like Microsoft AI Builder to handle form processing automatically. Not only does this cut down on manual work, but it also makes things faster and more accurate. In a nutshell, automated form processing is now essential for businesses that want to streamline workflows, boost productivity, and keep up with digital transformation across different industries.

It’s worth considering that moving to AI-powered form processing also helps with compliance—something many US organizations need to keep in mind. For example, regulations like HIPAA in healthcare, SOX in finance, or even GDPR for companies handling EU data, require solid tracking and security. Automating how data is captured and validated makes it easier to keep good records, strengthen data protection, and respond quickly to audits or regulatory needs. As more businesses focus on digital transformation, automated form processing is becoming a must for staying competitive and meeting today’s data-driven demands.

Understanding AI Builder Form Processing

AI Builder is part of the Microsoft Power Platform, designed to let organizations bring artificial intelligence into their everyday business processes. Its form processing feature uses machine learning and OCR (Optical Character Recognition) to pull key details from both structured and semi-structured documents. What does this mean in practice? You can capture information from invoices, receipts, applications, and all sorts of forms—without having to type things in by hand.

One thing that sets AI Builder apart is how smoothly it works with other Power Platform tools like Power Automate and Power Apps. This unified approach lets you manage document workflows all in one place. You can set up custom models that fit your unique document layouts or use prebuilt models for more common forms. The process is pretty straightforward: upload sample forms, label the fields you care about, and let the model learn what to look for. After that, AI Builder can process new documents as they come in—real-time or in batches—turning them into structured data ready for your databases, business apps, or automated flows.

Something you should keep in mind is that AI Builder is made to be accessible for everyone, not just IT experts. Its low-code environment means even folks without a background in machine learning can build, train, and deploy models. This opens the door for more employees to get involved in automation projects and helps organizations speed up their digital transformation. Plus, with integration to Microsoft Dataverse, all that extracted data is stored securely and can be tapped for analytics, reporting, or further automation down the road.

Setting Up Your First Form Processing Model

Getting started with a form processing model in AI Builder is easier than you might think. Here’s a step-by-step overview:

• Identify which types of documents you plan to automate and collect a good mix of samples.
• Access the Power Platform environment, select the form processing model template, and upload your sample documents (PDF, JPEG, PNG, or TIFF).
• Label the specific fields on each form that you want the model to extract. Use a variety of samples that show different layouts, designs, and ways people might fill them out.
• Train the model using your labeled samples. AI Builder learns to find and extract the right data from similar forms.
• Test the model with extra samples to ensure accuracy.
• If results look good, publish the model and integrate it into your business applications or workflows.
• Regularly update your training data with new document examples to keep your model accurate as your forms evolve.

For example, if you work in healthcare and need to process patient intake forms, include samples with different handwriting, scanned copies, and multiple layouts. The more real-world examples you use, the better your model will perform. Many organizations set up a feedback loop where users can flag any extraction errors. These flagged cases can then be added to your training set, making your model even smarter over time.

Power Automate Integration

Power Automate is Microsoft’s tool for automating workflows, and it connects directly with AI Builder to make form processing even smoother. After publishing your form processing model, you can weave it into a Power Automate flow, letting you automate the entire process from receiving a document to pushing the extracted data where it needs to go.

A typical workflow in Power Automate might include:

• Triggering the flow when a new file lands in a SharePoint library or when an email with an attachment comes in.
• Sending the document to your AI Builder model, which pulls out the data you need.
• Using conditional logic or validation steps to double-check the data and handle any exceptions.
• Storing the structured data in a database, sending it for approval, or using it to start other business processes.

This setup keeps manual work to a minimum, speeds up processing, and keeps your data consistent across systems.

Power Automate also has connectors for hundreds of third-party applications, including Salesforce, SAP, and Oracle. This means you can automatically sync extracted data with your ERP, CRM, or any other business-critical system. For example, if you’re in insurance, you might automatically feed claim data into your claims management system, flag missing information, or create audit logs for compliance. This kind of integration supports digital workflows from start to finish and helps organizations react quickly to both customer needs and regulatory requirements.

Advanced Form Processing Techniques

Sometimes, form processing gets a little more complicated than just pulling out basic fields. That’s where advanced techniques come in handy, especially if you’re dealing with complex layouts, handwritten text, or checkboxes. AI Builder gives you the flexibility to create custom models that can handle multi-page documents, tables, and even nested fields.

If your organization handles lots of different form layouts or templates, AI Builder’s multi-layout processing is a real plus. This feature lets a single model recognize and extract data from a variety of document designs, making it easier to scale up when you’re dealing with lots of different forms. Handwritten text and checkboxes can be tricky, but AI Builder’s OCR is designed to process many types of handwriting—just keep in mind, results can vary depending on the quality of your samples and training data. For best results, always use clear, high-resolution samples and keep your model updated with new examples.

Industries like logistics and supply chain often use forms with tables, item lists, signatures, and checkboxes for quality checks. AI Builder’s ability to read tables and recognize checked boxes can save a ton of manual review time. In government, where agencies might process handwritten census forms or ballots, being able to accurately interpret handwriting and checkboxes is crucial. In these situations, it’s common to combine AI Builder with a human review step to make sure everything is accurate and meets legal standards.

Performance Optimization

To get the most out of form processing, keep these best practices in mind:

Partnering with power platform consulting services can significantly enhance your AI Builder form processing implementation. Our expertise ensures seamless integration, efficient automation, and continuous performance improvements tailored to your organization’s unique requirements, making us a valuable addition to your optimization efforts.

• Use confidence scoring to determine how reliable the extracted data is. Set thresholds for which documents are processed automatically and which need a manual check.
• Apply quality preprocessing steps like image enhancement, deskewing, and noise reduction, especially with scanned or low-quality documents.
• Use batch processing to handle large volumes of forms efficiently.
• Monitor your model’s performance and retrain it with new samples regularly to adapt to changing document types.
• Set up feedback systems where users can flag mistakes in data extraction. Feed these cases back into training to improve your model.

For example, a bank processing loan applications might set a 90% confidence threshold; anything below that gets sent to a verification team, while high-confidence applications go right into the system. This approach helps balance automation with risk management and keeps your organization in line with compliance standards. If you operate in a tightly regulated industry, document your confidence thresholds and review steps for internal audits or external checks.

Industry Applications and Use Cases

Automated form processing with AI Builder is making an impact in all kinds of industries, each with unique document types and compliance needs:

• Financial services: Banks use form processing to handle loan applications, new account forms, and KYC (Know Your Customer) paperwork, speeding up approvals and reducing errors.
• Healthcare: Organizations process patient intake, insurance claims, and medical records, making it easier to move data into electronic health systems.
• Legal: Firms automate contract analysis, compliance tracking, and document discovery, turning unstructured files into searchable, usable data.
• Manufacturing and supply chain: Used for automating invoices, purchase orders, and quality assurance documentation.
• Government, education, and insurance: Agencies and institutions digitize and process huge volumes of forms, improving service delivery and efficiency.

Example:
A major US insurance company adopted AI Builder and now processes thousands of claims forms every day, cutting manual entry time by 70% and improving accuracy. Law offices use form processing to pull out key contract clauses and data points automatically, speeding up reviews and lowering the risk of missing important information. Schools and colleges digitize enrollment forms, financial aid applications, and test results, making information easier to access and reducing administrative work.

Comparing Form Processing Solutions

Microsoft AI Builder is just one of several options for automated form processing. Here’s a comparison of some popular solutions:

When comparing solutions, consider:

• Model training flexibility
• OCR accuracy
• Support for complex layouts
• Ease of integration
• Pricing models

Your return on investment depends on the number of documents processed, reduction in manual work, and improvements in speed and accuracy. Some platforms offer specialized features for certain industries, like pre-trained models for healthcare or legal documents. Always match your choice to your organization’s needs, technical environment, and expected support.

Implementation Best Practices

Rolling out AI Builder for form processing works best when you:

• Pinpoint which document workflows will benefit most from automation.
• Get input from business, IT, and compliance teams to define success.
• Gather a diverse set of sample documents, including both everyday and edge-case scenarios, for training your model.
• Set up clear governance for retraining your model, monitoring data quality, and tweaking workflows as your business changes.
• Prioritize security and compliance, especially with sensitive or regulated data.
• Offer training and change management support to help your team adapt.
• Monitor performance metrics and collect feedback to refine your processes.

Consider running a pilot project before full deployment. This lets you test extraction accuracy, measure time savings, and spot integration issues in a controlled setting. For US-based organizations, ensure your form processing solution meets relevant federal and state rules—like HIPAA, SOX, or FERPA, depending on your industry. Involve legal and compliance teams early to ensure regulatory requirements are met and data governance is solid.

Troubleshooting and Common Challenges

Common challenges in form processing implementation include:

• Low extraction accuracy: Often due to blurry samples, inconsistent layouts, or insufficient training data. Use clear, representative samples with a variety of layouts.
• Low confidence scores: Retrain your model with more diverse examples or improve image quality before processing.
• Integration difficulties: When connecting AI Builder with external systems or custom apps, use clear documentation and thorough testing of Power Automate flows.
• Performance bottlenecks: Can occur with large batches. Adjust batch sizes and monitor resource usage to smooth things out.
• Exceptions and outliers: Forms that don’t match expected layouts or include handwritten notes outside standard fields. Set up a manual review step in your workflow to prevent data loss and maintain accuracy.

Document your troubleshooting process and maintain a knowledge base of common issues and solutions. Stay active in Microsoft’s Power Platform community forums and consult official documentation to keep up with new challenges and solutions.

Frequently Asked Questions

What types of documents can AI Builder process?

AI Builder can handle a wide range of documents, including invoices, receipts, applications, patient intake forms, contracts, and more. It supports both structured and semi-structured formats.

How does confidence scoring work in AI Builder?

Each extracted field is assigned a confidence score. You can set thresholds to determine which documents are processed automatically and which require manual review.

Can AI Builder handle handwritten forms?

Yes, AI Builder’s OCR technology can process many types of handwriting, but accuracy depends on the quality of samples and training data. For best results, use clear, high-resolution samples.

How does AI Builder integrate with other business systems?

Through Power Automate, AI Builder connects with hundreds of third-party applications, allowing you to sync extracted data with ERP, CRM, and other business-critical systems.

What are best practices for maintaining model accuracy?

• Regularly update your training data with new document examples.
• Use a variety of samples representing different layouts and data entry styles.
• Set up feedback loops where users can flag errors for retraining.
• Monitor model performance and retrain as needed.