Automated medical data extraction is transforming the healthcare industry by reducing operational spending and improving patient care. The process involves capturing and extracting crucial information from various medical documents using advanced technologies such as Optical Character Recognition (OCR), Artificial Intelligence (AI), Natural Language Processing (NLP), and workflow automation. This enables doctors, nurses, and admins to quickly access critical patient data, leading to smarter decisions and a better patient experience. By automating just 36% of healthcare document processes, the industry could save up to $11 Billion in claims alone. However, challenges such as inconsistent data formats, ensuring patient data privacy and security, integrating with existing healthcare systems, handling unstructured data, and maintaining accuracy and quality control must be addressed when selecting a data extraction tool for healthcare. Nanonets is an AI-based OCR software that can extract text from medical documents, process data, sync data into different systems, process invoices, and more, offering flexibility, customization, user-friendly interface, comprehensive integration, multilingual support, audit trail, and version control.