Glossary / O / Optical character recognition
Optical character recognition
Also OCR
Optical character recognition reads text from images and scanned documents and turns it into editable, searchable text.
In practice: Point it at a photo of a receipt, a scanned contract or a screenshot, and it extracts the words. AI-based OCR also understands layout, such as tables, forms and handwriting, and can pull out specific fields like totals and dates.
Why it matters when picking a tool
For receipts, invoices and forms, what matters is field extraction accuracy on your documents and whether results go straight into your accounting or spreadsheet tool. Test with poor-quality scans and handwriting, where tools differ most.
847 tools in our directory are in this area, mostly in Productivity and Finance and legal.