If you've used invoice processing tools before, you've probably experienced this: a new supplier sends an invoice, and your software has no idea what to do with it.
That's because most invoice tools rely on templates - predefined rules that map specific locations on a document to specific fields. Move the invoice total to a different corner, and suddenly your "automated" system needs manual intervention.
The Template Problem
Template-based systems work like this:
- You receive an invoice from a new supplier
- The system doesn't recognise the format
- You (or the software) creates a template by marking where each field appears
- Future invoices from that supplier use this template
This works... until it doesn't. Here's what breaks:
- Supplier redesigns their invoice - template becomes useless
- Invoices with varying line items - templates can't handle dynamic content
- Multi-page invoices - templates often only work on page 1
- Slight formatting changes - even small shifts can break extraction
The result? You spend hours maintaining templates instead of doing actual work.
How AI Extraction Is Different
AI-based extraction doesn't rely on templates. Instead, it reads invoices the way a human would - by understanding context.
When you upload an invoice to an AI system, it:
- Reads the entire document
- Identifies what looks like a supplier name, date, total, line items, etc.
- Extracts the data based on meaning, not position
This means:
- New suppliers work immediately - no setup required
- Format changes don't matter - the AI adapts
- Complex invoices are handled - multi-page, variable layouts, all fine
Real-World Accuracy
We're honest about accuracy. Our AI achieves:
- 90%+ first-parse accuracy across all fields
- 97% accuracy on amounts (the numbers that matter most)
- Continuous improvement as the system learns your suppliers
That's not 100%, and we don't claim it is. You always review before posting to your accounting software. But it's accurate enough that a 30-second review is usually all you need.
The Learning Advantage
Here's where AI really shines: it learns.
Every time you correct a supplier name or adjust a field, the system remembers. Process 10 invoices from the same supplier, and by invoice 11, accuracy approaches 99%.
Template systems don't learn. They're static. AI systems get smarter with use.
Which Approach Is Right for You?
Template-based tools can work if:
- You have few suppliers (< 20)
- Those suppliers never change their invoice format
- You have time to set up and maintain templates
AI extraction is better if:
- You receive invoices from many suppliers
- You don't want to maintain templates
- You value time over configuration
Key Takeaways
- Template-based invoice tools require setup for each supplier and break when formats change
- AI extraction works with any format from day one, with no configuration
- Real-world accuracy is 90%+ first-parse, improving as the system learns
- For most businesses, AI saves significant time compared to templates
Want to try AI-powered invoice processing? Start free with Drakon Invoice Importer - 15 invoices/month, no credit card required.