Overview of the steps

While different tools may vary in their specifics, most AI-powered data extraction workflows share these essential steps:

1. Import invoices (typically PDFs or images) into an AI data extraction tool.
2. Use the AI tool to read and extract the required information.
3. Review and validate the extracted data.
4. Format the data to meet specific needs.
5. Export the data to an accounting system.

Let’s explore each step in more detail.

1. Importing invoices into your AI extraction tool

Invoices can typically be uploaded manually or imported automatically into AI document processing tools. Manual uploads involve downloading invoices and then uploading them to the system, which works well if you process invoices occasionally and in bulk.

For a more automated approach, connecting your mailbox to the AI tool is more efficient. You can do this by forwarding invoices to an email address provided by the AI tool or by using automation platforms like Zapier or Power Automate. These tools can monitor your mailbox for trigger events—such as emails moved to a specific folder or containing certain keywords—and send them to the AI tool for processing.

2. Extracting invoice data

The AI’s main role is to extract the required data from invoices, eliminating the need for manual work. By 2025, AI models are fully capable of this task, with tools generally falling into two categories:

Using open tools like ChatGPT

AI models like ChatGPT, Google Gemini, and Claude Sonnet are excellent for data extraction and ready to use without any upfront training. However, they only handle data extraction, meaning you’ll need to set up importing, exporting, and validation yourself. They can also be challenging to fine-tune, relying on prompt engineering to extract the desired information.

Using off-the-shelf AI extraction tools

Off-the-shelf tools are Software-as-a-Service (SaaS) platforms designed to handle the entire document processing workflow. These tools provide data extraction, integrations for importing and exporting, and features for validating and correcting outputs. They offer a streamlined, end-to-end solution. Many of these tools come pre-trained for invoice data extraction, as invoices are a common document type.

3. Validating the extracted data

Blindly relying on AI without validating its output can lead to costly financial errors. Incorrect predictions exported to your accounting system could have serious consequences, making validation a crucial part of any automated workflow.

To validate data effectively, you need a user-friendly interface with built-in error flagging that makes manual reviews straightforward without sacrificing automation. Setting this up independently can be resource-intensive, but many off-the-shelf tools include built-in validation features, such as human-in-the-loop workflows.

4. Formatting your data before export

Before exporting, the extracted data may need formatting to meet specific requirements. For example, an accounting system might require dates to follow a particular format or have other small adjustments.

Having a simple way to format data before export saves time and reduces workflow complexity, ensuring smooth integration with your destination system.

5. Connecting all the pieces together

The final step is exporting your formatted data to its destination. Here are the most common methods:

Pre-built integrations

Pre-built integrations simplify the process, requiring just a few clicks to connect with platforms like Zapier or Power Automate without any technical overhead. These integrations allow you to use invoice data seamlessly in thousands of other apps.

APIs and webhooks

APIs and webhooks send data directly to supported systems like ERP platforms or custom applications. This method offers seamless automation but may require technical expertise to set up.

CSV / Excel downloads

Smaller or medium-sized businesses can often get away with a straightforward approach. Exporting data as a CSV or Excel file is a simple, effective solution for less frequent or less complex needs.

Automating invoice data extraction in 5 minutes with Cradl AI

Cradl AI is an off-the-shelf tool that offers everything needed to quickly and safely process invoices. By signing up and following these steps, you can process your first invoice within minutes:

1. Define the data you want to extract

Create a list of the data points you want to extract, such as invoice number, vendor name, due date, total payable amount, VAT amount, or any other custom fields. To save time, you can start by cloning Cradl AI's invoice template.

2. Connect to your mailbox

Use Cradl AI’s email integration to integrate with your mailbox in just a few clicks. Cradl AI provides a custom email address to which you can forward invoices, automatically processing any attached documents. You can also import documents via API, third-party integrations, or manual bulk upload.

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3. Validate the extracted data

Cradl AI flags uncertain predictions and provides an intuitive interface for correcting and validating data. These corrections are used to improve the AI model, optimising performance over time.

4. Export data easily with integrations

Cradl AI supports seamless export to accountings system through integrations with platforms like Zapier, Power Automate, webhooks, APIs, and tools like Excel or Google Sheets.

Summary

AI data extraction tools simplify invoice processing by automating key steps. Invoices can be imported manually or through automated integrations, like email connections via Zapier or Power Automate. The AI extracts important details, such as invoice numbers and totals, with tools like ChatGPT requiring setup, while off-the-shelf solutions handle the entire workflow. Data accuracy is ensured through error-checking features, and the information is formatted to meet your accounting system's requirements. Finally, the data can be easily exported using integrations, APIs, or as CSV/Excel files. Cradl AI streamlines the process with pre-trained templates, email integration, validation, and smooth exports.

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