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There is an example of text recognition from an image on the recent Android 4.1 demo. The example is a picture taken with the phone of a post office receipt that is then OCRed and indexed. Is this OCR and indexing already available to all Google Drive users or just limited to Android 4.1?

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up vote 4 down vote accepted

This is nothing new. Google Docs supported character recognition in both images and PDF files.
It is also available in the mobile clients regardless of the OS version as this is a server side feature.

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how do I search for the indexed content? – 719016 Jul 12 '12 at 22:08
There's a search button on the action bar that does full text search. – Richard Borcsik Jul 13 '12 at 6:21
Great, I just noticed the key is to tick the conversion option for PDFs and images. Thanks! – 719016 Jul 14 '12 at 15:59

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