Document extraction software: eight criteria for evaluating a vendor

The document extraction market is crowded: legacy OCR, IDP platforms, ERP modules, AI startups. Demos all look fast; differences show up on GDPR, integration, exception handling and real cost at volume. This checklist does not replace a pilot, but helps you ask precise questions before signing.

Eight criteria to compare

• Data residency — hosting and processing in the EU, DPA available, no unjustified transfers outside the EEA
• Path per document type — does the system distinguish native PDF, text layer and scan, or treat everything the same?
• Validation — checks on totals, VAT, duplicates; anomaly flagging before export
• Review — operator queue with document alongside fields, not just raw JSON to chase
• Integration — API, webhooks, CSV/JSON export; compatibility with your ERP
• Pricing transparency — per page, per document, per field; human review costs included or not
• Realistic pilot — ability to test on your files, not just demo datasets
• Support and SLA — response times, maintenance, what happens if the service is down

Red flags to watch

Be wary of accuracy percentages without field definition and sample. Be wary of «zero human review» on real mixed documents. Be wary of contracts that require sending all documents to cloud models in non-European jurisdictions without a clear legal basis. Be wary of vendors who cannot explain what happens when the total does not match.

A good vendor comments on your pilot numbers — it does not replace them with generic slides.

How to structure the pilot

Twenty-five to fifty real documents, anonymised if needed: digital/scan mix, different suppliers, at least one «messy» case. Measure residual human minutes, review percentage, errors found downstream after a week of simulated use. Compare at least two solutions on the same sample — industry benchmarks rarely match your archive.

After signing: what to monitor

• Quality drift when new suppliers or layouts appear
• Average time to onboard a new document type
• Actual monthly cost vs quote (including peak volumes)
• Feedback from the admin team — if they avoid the tool, ROI is zero

LOCRAI is built around these criteria: EU extraction, built-in validation, API and review on exceptions. Use them as a reference — or as a baseline for comparison on your sample.