Human-Centred, Risk-Constrained Evaluation of Financial Document Recognition: Evidence, Critical Errors, and Selective Automation
Abstract
Financial document recognition is often assessed using character and word error rates, although these metrics do not express whether a system preserves the financial facts on which people and organisations act. This paper develops a human-centred, risk-constrained framework for evaluating financial document recognition as evidence recovery and decision support. It defines typed financial facts linked to visible source regions and separates verbatim transcription, deterministic normalization, and business interpretation. A layered quality model covers text, localization, layout, tables, fields, fact correctness, evidence grounding, uncertainty, robustness, and operational performance. Non-compensatory acceptance gates use one-sided uncertainty bounds for critical-field errors, preventing strong aggregate scores from masking failures in amounts, identifiers, signs, periods, or entity associations. Selective automation is formulated as a constrained routing problem that accounts for residual risk, human-review capacity, and review cost. The framework further specifies annotation and adjudication procedures, leakage-resistant benchmark partitions, statistical estimands, subgroup analyses, and a reproducibility card. Formal results establish the limitations of compensatory scoring, the non-zero upper risk bound after zero observed errors, and a loss sensitive decision rule for routing uncertain cases to human review. The contribution is theoretical and methodological; no new model, dataset, or empirical performance result is claimed.
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How should we evaluate whether an AI system can be trusted to read financial documents and not merely transcribe them?
Conventional OCR metrics such as character and word error rates capture transcription quality, but they can overlook something fundamental: a seemingly minor recognition error can alter a financial amount, reverse the meaning of a transaction, or compromise the reliability of an extracted financial fact.
This work argues that financial document recognition demands a fundamentally different evaluation perspective: one that measures not only what a system recognizes, but also whether the resulting financial information is correct, structurally consistent, evidence-grounded, and safe to rely upon.
I develop a human-centred, risk-aware evaluation framework that brings together financial fact correctness, evidence grounding, critical-error acceptance criteria, uncertainty estimation, and risk–coverage analysis for selective automation.
The broader contribution is a shift from measuring how accurately AI reads financial documents to evaluating how reliably its outputs can support consequential financial workflows.
The central question is not simply whether an AI system can read a financial document, but whether we have sufficient evidence to trust what it says it has read.
I welcome feedback, critical discussion, and perspectives from researchers working on document intelligence, OCR, and trustworthy AI.
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