What is OCR (Optical Character Recognition)?
When you scan a physical contract using a flatbed scanner or a smartphone app, the resulting PDF is essentially a photograph. Your computer does not know that the ink on the page spells out words; it just sees a grid of colored pixels. You cannot highlight, copy, or search for text within this document.
Optical Character Recognition (OCR) solves this. The OCR algorithm scans the image, detects the contrast between the ink and the paper, and uses neural networks to recognize character patterns (like the loop of a 'P' or the cross of a 'T'). It then generates a layer of digital text over the image.