Natural Language Processing (NLP)
Definition
Natural language processing (NLP) is the branch of artificial intelligence and computational linguistics concerned with enabling computers to understand, interpret, manipulate, and generate human language. NLP encompasses a wide range of tasks—including tokenization, parsing, named entity recognition, sentiment analysis, machine translation, summarization, and question answering—each addressing a different dimension of bridging the gap between the ambiguity of human language and the precision required for computational processing. Modern NLP is dominated by transformer-based neural architectures trained on large corpora, which have dramatically improved performance across virtually all language tasks.
NLP is the foundational technology underlying the majority of AI applications that interact with customers or process textual data in commerce and enterprise environments. Search engines, customer service chatbots, product review analysis systems, contract review tools, voice assistants, and email triage systems all rely on NLP capabilities to function. For commerce specifically, NLP enables understanding of unstructured customer feedback at scale, extraction of product attributes from supplier data sheets, and intelligent search that interprets shopper intent rather than matching keywords literally. As language models grow more capable, NLP increasingly handles tasks previously requiring specialized domain expertise—making it one of the highest-leverage AI investments for organizations handling large volumes of text.
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Last updated: May 12, 2026