2025 Explainer: The IDP Landscape in the Agentic AI Era

Intelligent Document Processing (IDP) is no longer just about reading text; it’s about making sense of the documents businesses rely on every day - invoices, contracts, order forms, receipts, or even customer emails - and turning them into decisions.

As agentic AI reshapes enterprise operations, the very definition of IDP is expanding from a back-office capture tool for data entry into a front-line layer that shapes how smoothly operations run, how compliant companies stay, and how quickly money flows.

Evolution of Intelligent Document Processing (IDP) with AI: from capture to decisions

Not long ago, IDP meant digitizing paperwork. You scanned an invoice, pulled the totals into a field, and reduced the need for someone to type it in. Vendors competed over how well their OCR handled skewed PDFs or blurry scans.

That worked for clean, structured forms, but the first time a supplier invoice is missing a purchase order, a contract has custom terms, an email arrives with an urgent order change, things break down and people are required to push decisions forward.

With generative AI IDP has moved from a utility that “reads” documents to an agentic decision layer that directly impacts efficiency, compliance, and financial outcomes. It actually understands the context of a document, checks it against reference data, applies business rules like tax compliance, and decides what's next - approving, rejecting, or routing it for review.

IDP today: verticalization and use cases in finance, procurement, and sales

This evolution has also changed the spirit of competition. With the end goal now set for systems – or as we call them AI agents - that can decide what’s valid, compliant, and ready to move forward without human clearance, the new competitive advantage is verticalization in high-stakes processes.

Pop quiz: when was the last time someone asked you about the capturing stats of your OCR engine?

Exactly.

Buyers today jump directly to the use case (as they should):

• PO-based invoices
• Non-PO invoices with e-invoicing requirements
• Tax validation across invoice types
• Managing sales orders and confirmations
• Streamlining inquiry intake
• Expense management

Each of these begins with a capture task, true, but more than anything, they are decision flows, orchestrated by specialized agents for each process. They make the difference between efficiency or delays, avoiding penalty payments, improving cashflow transparency, ensuring accurate financial planning, and so much more.

We see this every day – business domains are where new age IDP proves its value, bypassing comparisons between marginally higher extraction rates, and looking into the governing of complex processes with precision and compliance, exactly where agentic AI delivers the most.

Hypatos in the 2025 Gartner® Magic Quadrant™ for IDP: a Challenger’s perspective

Against this backdrop, to us, Gartner’s Gartner® Magic Quadrant™ for IDP is a useful market map. The way we see it, the Quadrant is not a black and white comparison between winners and losers, but rather a matchmaking tool between buyer priorities and vendor strengths. We read each quadrant as corresponding to a different type of buyer fit: scale players, niche specialists, innovators, or agile challengers.

For Hypatos, the real focus of the research is how the Quadrant reflects the expanded definition of IDP. Vendors evaluated based on how they address the broader spectrum of comprehension, validation, and workflow orchestration, not capture alone and how agentic architectures, such as AI agents, redefine these capabilities. In our opinion, that is a clear signal of how deeply generative and agentic AI has reshaped the category itself.

As for Hypatos, being recognized as a Challenger in the 2025 Magic Quadrant™ for IDP confirms our role in this shift. We see it as a validation that our verticalized, compliance-first approach is not only distinct, but also increasingly relevant to enterprises navigating the agentic era of IDP.

Get your complimentary copy of the Gartner® Magic Quadrant™ for Intelligent Document Processing https://www.hypatos.ai/gartner

_{Gartner, Magic Quadrant for Intelligent Document Processing Solutions, By Shubhangi Vashisth et. al, 3 September 2025}

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_{Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.}

The future of Intelligent Document Processing (IDP) with agentic AI

For buyers, the big picture is clear: IDP has moved beyond capture and into decision-making intelligence, powered by autonomous AI agents. The question is no longer “Who extracts text the fastest?” but:  

• Who ensures invoices pass regulatory checks every time?
• Who keeps order management flowing without delays?
• Who gives finance teams the clarity to plan with confidence?

Choosing IDP today means looking past marginal accuracy gains and focusing instead on solutions that deliver decision-ready processes in the parts of the business where they matter most.