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Data & Trust

How to Validate AI-Extracted Data Without Rechecking Everything

PMTheTechGuy
··2 min read
How to Validate AI-Extracted Data Without Rechecking Everything cover image

The paradox of AI extraction: you use it to save time, but then spend hours verifying the results.

There's a better way: strategic validation.


Spot Checks (Not Full Audits)

You don't need to check every result. You need to check enough to be confident.

The 5% Rule: Randomly sample 5% of your results. If the error rate is acceptable, trust the rest.

Example:

  • Process 100 invoices.
  • Manually check 5 random ones.
  • If 4/5 are correct, you're at ~80% accuracy.
  • If that's acceptable, proceed.

Confidence Thresholds

Most AI APIs return a confidence score (0.0 to 1.0).

Use this to your advantage:

  • Auto-approve anything > 0.90 confidence.
  • Flag for review anything < 0.70 confidence.

This focuses your validation effort on the uncertain results, not the obvious ones.

Sampling Strategies

Random sampling catches general errors. Stratified sampling catches edge cases.

Example:

  • Sample 5 invoices from each vendor.
  • Sample 5 invoices from each month.
  • Sample 5 invoices with amounts > $10,000.

This ensures you catch vendor-specific quirks and date formatting issues.

Logs as Evidence

Validation isn't just about correctness. It's about traceability.

Log every extraction:

  • Input file
  • Extracted fields
  • Confidence scores
  • Timestamp

If someone challenges a result months later, you can show exactly what the AI extracted and at what confidence level.

Conclusion

Don't validate everything. Validate strategically:

  1. Spot-check a sample
  2. Use confidence thresholds
  3. Focus on edge cases
  4. Log everything

Trust, but verify—smartly.

Tags

#AI#Validation#Quality Assurance#Automation
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