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How do you handle OCR for scanned contracts and filings?

Handling OCR for scanned contracts and filings involves a combination of preprocessing, OCR engine selection, and post-processing to ensure accuracy and usability. The process starts with preparing scanned documents for OCR by addressing issues like skewed pages, noise, or low resolution. Tools like OpenCV or ImageMagick can correct image orientation, remove artifacts, or enhance text contrast. For example, applying a Gaussian blur followed by thresholding can improve readability for faded text. Preprocessing is critical because poor-quality scans lead to OCR errors, especially with handwritten annotations or complex layouts.

Next, selecting an appropriate OCR engine depends on the document type and required accuracy. Open-source tools like Tesseract work well for clean, machine-printed text but may struggle with tables or unusual fonts. Commercial APIs like Google Cloud Vision or AWS Textract offer better handling of structured data, such as extracting tables from financial filings. For instance, AWS Textract can identify key-value pairs in contracts (e.g., “Effective Date: 2023-01-01”) and preserve table structures, which Tesseract might misalign. Hybrid approaches are common: using Tesseract for general text and a commercial API for specific sections, balancing cost and precision.

After OCR, post-processing structures the raw text into usable data. Regular expressions can extract patterns like dates or contract IDs, while NLP libraries like spaCy identify entities (names, addresses) or classify clauses (termination, payment terms). For multi-column documents, layout analysis libraries like PyMuPDF determine reading order to avoid mixing columns. Finally, validation ensures data integrity—checking extracted dates against a known range or cross-referencing company names with a database. The output is often integrated into systems via APIs or formatted into JSON/XML for databases. For example, extracted contract terms might be fed into a DocuSign workflow or a compliance tracking system. Error logging and manual review loops are essential for handling edge cases like damaged pages or uncommon fonts.

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