Do companies such as instagram and websites with KYC requirements actually parse/save the data in the photo and look you up in a government database when you se

Do companies such as instagram and websites with KYC requirements actually parse/save the data in the photo and look you up in a government database when you send your ID or does a random human just stare at your photo and make a judgement call like a bouncer? In either case, it's frightening that that is how it works.