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Optical character recognition (OCR) technology can help businesses solve these issues. OCR algorithms can transform paper-based documents to editable searchable text. They can extract information from files and enter it into the corresponding fields in IT systems. How does OCR work? How can this technology help you achieve business goals? And should you contact an artificial intelligence solutions provider to help you build and set up OCR software? What is optical character recognition, and how it works OCR definition is a technology that converts typed or handwritten text into machine-readable digital data.