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Document Scanning and Digitization: Where Businesses Stand Today

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Updated: August 2025.

Most organizations have made real progress digitizing their paper records — but “most” doesn’t mean “all,” and recent research shows paper is proving more persistent than a lot of digital transformation messaging suggests.

What the Research Shows

The most relevant recent data comes from the Association for Intelligent Information Management (AIIM), in partnership with Deep Analysis. Their Market Momentum Index: Intelligent Document Processing (IDP) Survey 2025, released in August 2025, surveyed 600 enterprises across the United States, Germany, Austria, and Switzerland. A few findings stand out:

  • Seventy-eight percent of companies now have some form of AI-powered document processing operational — a sharp jump from prior years, and a sign that digitization tools have moved well past early adoption.
  • Paper hasn’t disappeared, though. Sixty-one percent of document processing workflows still involve paper documents in some form, and 48 percent of organizations actually expect their paper volumes to increase over the next year.
  • Security and privacy were identified as the top challenge organizations face when implementing document processing technology, ahead of cost or integration concerns.
  • There’s significant turnover happening in the underlying technology itself: 66 percent of new document processing projects are replacing an existing system rather than starting from scratch, largely driven by newer AI and large language model capabilities.

The practical takeaway: most organizations are doing some digitization, but very few have fully eliminated paper from their operations, and the work of capturing, organizing, and securing documents is a continuous effort rather than a finish line.

Why This Matters for Businesses

Organizations sitting on backlogs of paper files — whether old client records, HR documents, or historical archives — face the same underlying risks regardless of what any survey says: misplaced files, slow retrieval, and exposure if physical records aren’t properly secured or destroyed. Digitizing those records makes them searchable and easier to manage as part of a broader records retention policy, and removes the ongoing cost and risk of physical storage.

Security deserves particular attention here. With data security now cited as the top concern among organizations adopting document processing technology, it matters who handles your records during a scanning or digitization project — not just whether the work gets done.

Getting Started With Document Scanning

For organizations that want to digitize paper records but don’t have the staff or equipment to do it efficiently in-house, outsourcing is generally the more practical route. Tab Service Company’s document scanning services handle bulk scanning and indexing so records become part of a searchable system rather than a stack of folders, and pair naturally with data entry and data capture for organizations that also need information extracted from those documents into a usable format. For ongoing incoming paperwork rather than a one-time backlog, a digital mailroom setup can capture documents as they arrive instead of after they’ve piled up.

On the security side, Tab Service Company is SOC 2 compliant and has been processing sensitive records for organizations in healthcare, higher education, legal, and financial services since 1960 — over 65 years of handling exactly the kind of compliance-sensitive documents these projects typically involve.

Bottom Line

Document digitization remains an active, ongoing need rather than a project most organizations have already finished. If your organization is sitting on paper records that need to be digitized, secured, or made searchable, contact Tab Service Company to talk through what that would look like for your specific records.

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