Most workflows need more than text capture
OCR solved the problem of turning scans into text. Extraction helps pull specific facts. But many business workflows still depend on understanding what the document means, how clauses relate, whether evidence conflicts, or what the reviewer should do next. That is where document understanding becomes the more useful term.
Understanding matters when context changes the answer
A workflow crosses into understanding when the answer depends on more than one field or one sentence. Contracts, reports, diligence rooms, policies, and claims files all create situations where context determines the correct interpretation.
The buying test is reviewer speed with evidence
The easiest way to test document understanding is to see whether the product helps a reviewer move faster through a real file set without hiding the supporting evidence. If it does, the system is doing more than OCR or extraction.