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Definition of Robotic process automation

How does robotic process automation (RPA) work

Robotic Process Automation (RPA) is a technology application that uses software robots (bots) to automate repetitive tasks across digital systems.

Software bots mimic human actions and perform repetitive tasks. Instead of people, software bots perform lower-value tasks, such as logging into various systems and performing basic tasks. They can also learn and improve their cognitive processes by analyzing and interpreting a text.

Just like any good employee, RPA bots need instructions. Users create scripts, essentially a set of rules, that define the tasks the bot will perform. These scripts allow the bot to:

  • Gather Information — The bot can capture data from various sources.
  • Navigate Systems — It can open applications and move between them seamlessly.
  • Take Action — It can initiate pre-defined actions or responses based on the data it collects.
  • Talk to Others — The bot can communicate with different software systems to exchange information.

But now, RPA is evolving to incorporate artificial intelligence (AI) capabilities. By connecting RPA tools to AI modules like:

  • Optical Character Recognition (OCR): Extracting text from images
  • Machine Learning: Continuously improving decision-making
  • Natural Language Understanding: Interpreting human language

Who is using RPA and its applications

RPA is finding its way into many industries, automating tasks across various departments. Here are some examples:

  • Finance: Streamlining tasks like account reconciliation, generating reports, and processing payments.
  • Customer Service: Automating FAQs, resetting passwords, and handling basic inquiries.
  • Healthcare: Processing insurance claims, scheduling appointments, and generating reports.
  • Human Resources: Payroll processing, onboarding new employees, managing benefits.
  • Manufacturing: Automating data entry from production lines, generating reports, and managing inventory.

What are RPA's benefits and challenges

RPA is a powerful tool for automating tasks and improving business efficiency.  However, it's important to carefully consider its applications and limitations.


  • Bots can work 24/7, reducing processing times and freeing human employees for more strategic tasks.
  • Automation minimizes errors caused by manual data entry.
  • RPA can save businesses money by reducing labor costs associated with repetitive tasks.
  • Consistent and automated processes can help organizations meet regulatory requirements.

Challenges of RPA:

  • Developing and implementing RPA solutions requires upfront costs.
  • RPA bots excel at structured, repetitive tasks but may struggle with complex, unstructured scenarios.
  • Automation may lead to job losses in some areas, requiring workforce retraining or upskilling.

Key Takeaways

  • Robotic Process Automation (RPA) uses software bots to automate repetitive tasks across digital systems, mimicking human actions such as data gathering, system navigation, and task execution.
  • These bots are programmed with scripts defining their tasks and can now incorporate artificial intelligence (AI) capabilities like Optical Character Recognition (OCR) and Natural Language Understanding (NLU).
  • RPA is utilized across various industries, including finance, customer service, healthcare, human resources, and manufacturing, to streamline processes and improve efficiency.
  • While RPA offers benefits such as 24/7 operation, error reduction, cost savings, and regulatory compliance, it also presents challenges like upfront costs, limitations in handling complex tasks, and potential job displacement requiring workforce adjustments.