AI-Driven Document Classification Savings & ROI
The labor cost to manually index a document depends on a number of factors like the number of fields you need to capture for indexing – primarily used for easy document retrieval or workflow processing. The more fields manually entered the higher the processing cost for each document. Based on our industry experience we find most businesses apply 4-7 index fields per document. Indexing time will vary greatly depending on how the document was scanned in or uploaded. It might take more time to index at a multi-function device compared to just uploading a file and adding index data with your laptop. For this savings calculator we will use 5 fields per document and say the process takes no more than 2 minutes to complete.
More importantly than the field extraction is the fact that AI-Driven Document Classification will help drive more efficient compliance and security in your company. AI ensures sensitive documents are classified correctly but it's not 100 percent and that's why having human oversight for expectations is needed. Online you can find companies that state a lost or misclassified document can cost a company anywhere from $120-$220 to replace. That does not even take into account if there are any sort of compliance or regulatory fines. For our saving calculator we are going to be more conservative and say $50 cost per misclassified document where the rate of manual error for classifying is 5% and AI error of classifying is 0.5%.
AI-Driven Document Classification is also storing the files in their correct secure locations and applying the correct retention policies as required so we are estimating the manual time to complete these tasks would be 30 seconds. We are not taking into account the auto document splitting or sending files directly to a workflow automation process as part of the savings calculator below.
The higher the volume of documents classified the higher the potential percentage savings. A lower volume company might see cost savings of 60% whereas a high volume company could have cost savings of greater that 85%-90%.
Top 3 Company Benefits Maxxified’s AI-Driven Document Classification Solution
Implementing an AI-driven document classification solution can transform the way your business handles data. Here’s what we believe the top three benefits are:
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Saves Time and Boosts Efficiency
Manual document sorting is time-consuming and prone to human error. AI-driven classification automates the process, allowing employees to focus on higher-value tasks.
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Improves Accuracy and Consistency
AI ensures documents are classified correctly, reducing the risk of misfiled or lost information. If AI encounters a document, it can’t classify it can send that document to an exceptions workflow where a team member can review. With machine learning, the system continuously improves, adapting to new document formats and structures for even better accuracy over time.
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Enhances Compliance and Security
Many industries have strict regulatory requirements for document handling. AI classification helps enforce compliance by automatically tagging documents based on sensitivity, retention policies, and access controls, ensuring secure and auditable data management.
Maxxified’s AI-driven document classification engine can help streamline your business operations, reduce errors, and maintain better security over their information.
Calculate your potential savings by entering your AP department information into the form below. Your Maxxified savings will be calculated and updated as you manipulate the quantity input fields.
Potential Savings:
Daily: $0.00
Monthly: $0.00
Yearly: $0.00
* Maxxified is estimating savings based on a 50% ROI. To calculate ROI % you can use this formula:
ROI (%) = [(Annual Savings - Annual Maxxified Cost) / Annual Maxxified Cost] x 100
Error Cost Savings:
Manual Error Cost=Documents×Manual Error Rate×Cost per Error
AI Error Cost=Documents×AI Error Rate×Cost per Error Error
Savings=Manual Error Cost−AI Error Cost
