Key Takeaways

  • Document automation saves time and reduces errors.
     

  • AI tools now extract data and autofill forms smarter than ever.
     

  • Top tools in 2025: DocuSign, PandaDoc, Docsumo, Klippa, UiPath, Power Automate, Zapier, pdf.ai.
     

  • Great for legal, HR, finance, real estate, and healthcare.

 

Have you ever felt like some paperwork doesn’t necessarily have to take up a lot of time? Instead, it should be the kind of task that takes away the least amount of time. In today’s world, the slower you are, the less value you provide, especially when AI and automation are the booming industries because they save time.

When big corporations find a way to save time, they do it without hesitation, but why is this the case? This is because the more time they save, the more money they keep. It is that simple. They would rather spend, say, $20,000 on automation and AI tools than pay more than that for human output because yes, labor an expensive asset for all companies.
 

Now the demand has shifted to everything faster. Which is why, we will lay down all the best document automation software there are in 2025!

But before that, let’s start with the basics…

 

What Is Document Automation?

Document automation means using software to create, manage, send, and sign electronic documents without doing everything manually. Instead of doing the documents piece by piece, these tools allow you to create a template, save them, and most even allow you to schedule them to be sent.

For example:

  • A sales team can automatically generate contracts using templates.
     

  • An HR department can send offer letters to new hires with just a few clicks.
     

  • A law firm can collect signatures from clients without printing a single page. (But this does not apply to every legal document)
     

Automation allows companies to save a lot of time for just quick documentations allowing them to move forward with more important tasks efficiently.

 

Top Features to Look for in Document Automation Tools

These tools are created for the sole purpose of satisfying the demand for quick actions needed to be taken.

According to A Clear Path: “20% to 30% of employees’ workweeks are spent on paperwork.” So companies offering automation tools allow these businesses to cut costs by simply integrating automation into their workflow.

For you to choose the best automation tools that you need, they must have these benefits present:

  • Templates – Reusable documents with smart fields
     

  • E-signatures – Let others sign documents legally online
     

  • Workflow automation – Set rules for sending, reviewing, and approving
     

  • AI-powered data extraction – Read and fill out documents automatically
     

  • Cloud storage integration – Connect with Google Drive, Dropbox, or OneDrive
     

  • Security – Encryption and compliance with legal standards
     

Not every tool offers all of these. That’s why the best tool for you depends on what your team needs.

 

Pros and Cons of Low-Code Document Automation Tools

Many tools today are considered low-code—meaning you don’t need to be a programmer to use them. These platforms are made for regular users and usually come with drag-and-drop options or pre-set actions.

Pros:
✅ Easy to use
✅ Quick to set up
✅ No need to hire developers
✅ Flexible for different industries

Cons:
⚠️ Limited customization
⚠️ May not scale well for complex workflows
⚠️ Dependence on built-in features (can’t code your own)

Low-code tools are great for small to mid-sized businesses or teams who want to move fast without dealing with complicated setups.

 

AI-Powered Document Automation: The Future Is Now

In 2025, more tools are powered by artificial intelligence (AI)—and it’s changing everything. Instead of just following rules, AI-powered tools can read documents, extract information, and even summarize or autofill forms.

Here’s how AI helps:

  • Scans invoices and pulls out payment details
     

  • Fills in names, dates, and other fields using past data
     

  • Flags errors before sending
     

  • Suggests changes based on document content
     

If you deal with large amounts of paperwork, AI automation can save hours every week and reduce costly mistakes.

 

Best Tools for Automating Documents in 2025

Here are some of the top tools in 2025 that are leading the way in document automation:

🖊️ DocuSign

  • Best for: E-signatures and contract management
     

  • Features: Document templates, signer tracking, automated reminders
     

  • Why it’s great: Reliable, secure, and widely accepted in legal and business circles
     

📄 PandaDoc

  • Best for: Sales teams and proposals
     

  • Features: Customizable templates, analytics, e-signatures
     

  • Why it’s great: Lets you track who opens and interacts with your documents
     

Docsumo

  • Best for: AI-powered data extraction
     

  • Features: OCR (optical character recognition), form reading, auto-tagging
     

  • Why it’s great: Ideal for automating invoices, receipts, and other scanned documents
     

Klippa DocHorizon

  • Best for: High-volume document processing
     

  • Features: OCR, language detection, data redaction
     

  • Why it’s great: Useful in finance and healthcare industries for secure, automated handling
     

UiPath Document Understanding

  • Best for: Large enterprises with RPA needs
     

  • Features: Combines robotic process automation (RPA) with AI
     

  • Why it’s great: Integrates document workflows into broader automated systems
     

Microsoft Power Automate

  • Best for: Microsoft ecosystem users
     

  • Features: Connects Excel, Word, Outlook with automation triggers
     

  • Why it’s great: Seamless with Microsoft tools; strong for internal document tasks
     

Zapier / Make.com

  • Best for: Automating between apps
     

  • Features: If-this-then-that logic for 6,000+ apps
     

  • Why it’s great: Helps connect your document tools with CRMs, email, and storage
     

pdf.ai

  • Best for: Reading and working with PDFs intelligently
     

  • Features: Document summarization, question answering, content tagging
     

  • Why it’s great: Makes working with long or complex PDFs a breeze
     

 

What Industries Benefit Most

Document automation helps almost every kind of business. But some industries benefit more than others:

  • Legal – Client agreements, case forms
     

  • Finance – Loan applications, invoice processing
     

  • Healthcare – Patient records, insurance forms
     

  • HR & Recruiting – Offer letters, onboarding packets
     

  • Real Estate – Lease agreements, disclosures, client packets
     

If you handle repetitive paperwork, automation is a time-saver.

 

Starting a Business? Automate from Day One

When launching a new business, most people focus on names, branding, and customers—but don’t forget your backend. Contracts, agreements, and employee documents add up quickly.

Pro tip: Start by picking the right name for your business. You can find creative ideas and check domain availability at BusinessNameZone.com. Once you’ve nailed that down, use document automation to save time and stay organized from day one.

 

How to Choose the Right Tool for You

Not every tool fits every business. Here's what to consider before you choose:

  • Budget – Some tools offer free plans, others are priced for enterprises
     

  • Team Size – Will it support multiple users and roles?
     

  • Integration – Does it work with your CRM or cloud storage?
     

  • Use Cases – Do you need signatures, data extraction, or workflow routing?
     

  • Security Needs – Especially important in healthcare, legal, or finance
     

Test a few options before committing. Many offer free trials or demos.

 

The Future Is Automated

In the near future, all of our tasks will be almost automated, and doing paperwork will be a thing of the past.

There is an uptrend in terms of companies investing in AI to simply streamline their businesses, offering them much cheaper operational costs. It is not too late to jump in the boat with them.

Offering a faster service means everything in the business world; the faster you are, the more money you make and keep.

 

FAQ’s

1. What is document automation?
Software that handles document tasks automatically.

2. What types of documents can be automated?
Contracts, invoices, forms, proposals, and more.

3. What’s the best tool for automating documents in 2025?
DocuSign, PandaDoc, Docsumo, Klippa, UiPath, and others.

4. Are document automation tools safe to use?
Yes.

5. Can I use these tools without coding experience?
Yes, low-code is the standard for these tools since most people can’t code.

6. How do AI-powered tools help with automation?
They extract data, autofill forms, and detect errors.

7. What are things to look for in a document automation tool?

Workflow automation that saves time, such as templates and e-signatures.