Hyperautomation’s current market value of $12.95 billion is projected to surge to $31.95 billion by 2029, as reported by Mordor Intelligence. The reason behind this meteoric rise is quite simple: modern businesses require modern solutions, and hyperautomation is uniquely positioned to enable those solutions. So while hyperautomation was only first introduced in 2019 by Gartner, its ability to enhance business performance and support use cases across industries means that companies of all types should be integrating hyperautomation into their strategy.
What Is Hyperautomation?
Hyperautomation was coined by Gartner to describe an approach that seeks to automate as many business processes as possible within an organization. Implementing hyperautomation means increasing the sophistication and scale of existing automation processes — that usually operate independently — and then orchestrating them to function harmoniously at scale and with limited human intervention.
Technologies involved in hyperautomation include:
- AI enables machines to perform many cognitive functions of the human mind, such as understanding and analyzing data. It can also conduct operational processes such as onboarding, regulatory compliance, and numerous others where human labor is currently required. AI often uses machine learning, which enables AI to learn and improve over time.
- Machine learning (ML) is a subset of AI that deals with the development of algorithms that can “learn” from the data fed to it and use that knowledge to perform tasks without human instructions. For instance, with ML, AI platforms can “learn” to read and identify different types of handwriting and extract relevant data from it.
- Optical character recognition (OCR) identifies characters in images and documents and converts them into machine-readable data.
- Intelligent document processing (IDP) is a set of technologies used to automate the process of reading, classifying, and extracting information from documents.
- Natural language processing (NLP) supports IDP by providing the ability to comprehend and support natural, conversational human language.
- Robotic process automation (RPA) automates simple, repetitive tasks and pre-defined workflows that are typically part of more extensive processes.
- Event-driven architecture enables systems to execute processes comprising multiple RPAs from beginning to end without prompts from human operators.
As new technologies are developed, they can also be used for hyperautomation. The latest evolution of hyperautomation includes generative AI and large language models (LLMs), for example. With generative AI and LLMs, companies can automate a wider variety of processes. This includes data processes, such as data extraction, data refinement, and data analysis, and content creation, such as research, drafting documents, and compiling reports.
Automation vs. Hyperautomation
Hyperautomation and automation are both terms related to the use of technology to perform tasks previously done by humans. However, they differ in scope and approach.
Automation refers to the process of using technology to execute predefined tasks or processes, usually repetitive, rule-based tasks, without human intervention. One example is robotic process automation (RPA), which is designed to improve speed and operational efficiencies while eliminating the errors and risks associated with manual tasks. However, it has its limitations. RPA is typically deployed one task at a time and may cease to work if it has to make a cognitive decision.
Hyperautomation, as an advanced version of automation, bridges these gaps. It uses cutting-edge technologies like AI and ML to complete tasks and processes that require decision-making and cognitive abilities. This further reduces the need for human intervention and drives up accuracy and efficiency. Using hyperautomation also allows companies to automate an entire process from beginning to end.
Benefits of Hyperautomation
As businesses grapple with rising competition and potentially destabilizing market forces, the need to streamline business processes grows. Hyperautomation offers several benefits that can help them overcome these challenges.
Reduced Costs
Hyperautomation lowers costs by reducing the need for human involvement in complex business processes, thereby decreasing the cost of labor. For example, it reduces the need for humans to inspect documents manually or intervene in the case of complex, handwritten documents.
A leading UK commercial bank had information trapped in over 200 million backlogged client documents. Instead of hiring an expensive team of operators to go through these documents, the bank used Instabase to rapidly create an automated process that could understand these documents, split up document packets, identify and resize signatures, and integrate the information into their existing systems. In under three months, the bank processed 320,000 customer profiles and saved $2 million.
Increased Efficiency
Hyperautomation increases the efficiency of virtually any business process, achieving results faster with greater reliability. Standard Chartered Bank, for instance, reduced its client onboarding times from 41 days to 8 days by using Instabase’s generative AI document processing platform to automate client due diligence.
Less Manual Work
Hyperautomation solutions minimize manual work, freeing up employees from repetitive tasks so they can contribute at a higher level. Using Instabase, a top five U.S. insurer reduced the average handling time of long-term care claims from 10 to 2 days while significantly reducing the number of people needed to review documents manually.
Instabase can also be used as a workflow orchestration tool to pick up documents from wherever they are. Instead of having employees send files back and forth, Instabase can route documents, enrich them with API calls, and integrate them with upstream and downstream systems.
Improved Accuracy
Since hyperautomation minimizes human intervention, it drastically reduces the potential for human error. The same leading UK commercial bank with 200 million pages of client information could have had employees manually process that data, but that would have created a high degree of risk. Employees could easily make a typo or erroneously map information to the wrong client. Instead, the bank leveraged Instabase to achieve 97% accuracy.
Better Scalability
Unlike regular automation, which only works on a single, simple task, hyperautomation automates multiple tasks and orchestrates them to accomplish end-to-end processes. It also has the capacity to handle large volumes of data and tasks. This allows companies to scale automation across teams and the organization, amplifying its benefits.
Hyperautomation Use Cases
The transformative potential of hyperautomation can be applied to organizations of all industries — here are a few examples.
Financial Services
The workflows in financial services often require relevant information to be extracted from large quantities of unstructured data. Mortgages and other loan applications involve bank statements, tax returns, pay stubs, or other documents that provide proof of income. Customer onboarding involves Know Your Customer (KYC), which requires companies to verify the ID of their customers to meet regulatory standards. In addition, internal processes can also be complex and time-consuming. All of the above can be automated and integrated through hyperautomation.
One of America’s largest retail banks, for example, was able to expedite their processing of home loan applications using hyperautomation and estimated saving $4.8 million over three years as a result. They did this by using Instabase, which leverages generative AI, large language models, OCR, and other technologies, to automatically digitize over 500 document types, split up loan packets, and classify documents. The automated end-to-end document workflow processed over 1.4 million documents each month and improved the customer experience by increasing the speed and accuracy with which applications are processed.
Insurance
In addition to the processes shared with financial services, such as customer onboarding and communication, insurance companies have the added challenge of efficiently and accurately evaluating claims. This involves processing data from numerous sources, including internal data (policy status, limits, etc.) and data from customer reports, claims adjusters, and medical reports.
Instabase’s hyperautomation solutions can eliminate the need to manually extract relevant data from these highly variable and unstructured sources, reducing manual document processing time by as much as 85%. In one particular case, AXA UK automated manual processes to allow underwriters to use their expertise making underwriting decisions instead of spending time on rekeying data and other administrative tasks.
Healthcare
The financial side of the healthcare industry is enormously complex. Claims documents are typically unstructured, and the adjudication process for healthcare providers and payers involves unstructured documentation.
Hyperautomation eliminates the need to manually review this documentation. This decreases handling times and helps quickly identify claims that qualify for reimbursement. The result is reduced costs and a better claimant experience. Hyperautomation can also speed reviews related to appeals and denials, which are a common occurrence.
Hyperautomation’s value also extends well beyond administrative processes. It helps healthcare professionals analyze medical imaging reports with greater accuracy and speed. It also helps in clinical decision support systems by studying patient data and providing recommendations for diagnosis and treatment in real time — all of which contribute to improved patient outcomes.
At the research and development (R&D) level, pharmaceutical companies can leverage hyperautomation to accelerate drug delivery and development. In fact, a 2023 report by Boston Consulting Group shared that AI-driven drug R&D could potentially deliver time and cost savings of at least 25% to 50%.
Retail
Retailers grapple with contracts, purchase orders, delivery schedules, and dozens of other information sources as part of their daily operations. Hyperautomation extracts relevant data from these sources to improve inventory management in brick-and-mortar outlets. Hyperautomation can also extract the information you need for internal processes, such as invoice processing, or analyze sales data to predict optimal inventory levels.
A prime advantage of hyperautomation for retailers is its ability to improve the customer experience. For e-commerce players and online stores, hyperautomation technologies can provide personalized recommendations based on customer’s preferences and purchase behavior and increase the average value of transactions through relevant upsells and cross-sells. Chatbots can answer customer questions using natural language and lighten the burden on customer reps. In physical stores, hyperautomation can streamline payments through computer vision, IoT (Internet of Things) sensors, and smart carts, enabling checkout-free shopping experiences.
Customer Service
Fast, reliable customer service gives companies a competitive edge, and hyperautomation can provide the speed and accuracy they need to stay ahead.
Hyperautomation speeds up and simplifies customer onboarding. It can enable responses to customer inquiries around the clock with chatbots, and arrange for multi-channel sales processes with no need for intervention by the sales staff. But the truth is that hyperautomation can have a positive impact on customer service in any business where manual processes tend to impede responses to customer demands or complaints. It is also particularly effective in sectors involving complex customer documentation, such as financial services, insurance, or healthcare.
The benefits of hyperautomation aren’t limited to the industries above. Government institutions can also benefit from hyperautomation in terms of improved service delivery and data collection for reporting purposes. Manufacturing companies can better manage their supply chains. Travel and hospitality businesses can deliver a smoother customer experience. The list goes on and on.
How Does Hyperautomation Work?
To implement hyperautomation within your own business, there are four major steps to follow:
- First, identify processes to automate. Tasks that consume a lot of human effort, are repetitive, or are prone to error are ideal for hyperautomation because this is where you’ll see the biggest efficiencies and cost savings. Then, establish benchmarks and set goals to help you measure your progress and the impact of hyperautomation.
- Next, choose the right automation tools to fit your needs. Evaluate them based on their ease of use, scalability, customer support, and compatibility with your existing infrastructure. Also, assess if you have the right talent within your organization to use these tools effectively.
- Implement the tools you’ve selected and then measure the results. It’s advisable to run small-scale pilots before you proceed with a full-scale implementation so that you can test out the new workflows and work out any issues.
- Finally, use analytics tools to measure the results and identify areas that can be improved or adjusted. Map the performance of your hyperautomation tools to your KPIs to ensure your hyperautomation investments are achieving what you wanted.
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