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What is Natural Language Processing (NLP)? - Definition & Meaning

Learn what NLP (Natural Language Processing) is, how computers understand and process human language, and which applications exist for AI chatbots and automation.

Definition

Natural Language Processing (NLP) is a branch of artificial intelligence that enables computers to understand, interpret, and generate human language. NLP combines linguistics with machine learning to analyze and process text and speech.

Technical explanation

NLP encompasses techniques such as tokenization, stemming, lemmatization, named entity recognition (NER), sentiment analysis, machine translation, and text classification. Modern NLP uses transformer architectures (BERT, GPT) and word embeddings (Word2Vec, GloVe). Key applications include intent detection for chatbots, document classification, automatic summarization, and question-answering systems. NLP pipelines often combine rule-based methods with deep learning models for optimal accuracy.

How AVARC Solutions applies this

AVARC Solutions applies NLP in AI chatbots, document processing, sentiment analysis, and automated customer service. We build systems that classify emails, analyze contracts, and convert natural language into structured actions for business processes.

Practical examples

  • An AI assistant that answers customer questions in natural language and automatically creates support tickets based on message content.
  • A contract analysis tool that scans legal documents and automatically extracts key clauses, deadlines, and parties.
  • A sentiment analysis system that performs social media monitoring to track brand reputation in real time.

Related terms

llmprompt engineeringragai agentsmachine learning

Further reading

What is an LLM?AI development servicesWhat is Prompt Engineering?

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Frequently asked questions

NLP is the broad field of language processing. An LLM (Large Language Model) is a specific type of AI model trained on vast amounts of text that can generate natural language. LLMs use NLP techniques under the hood.
Yes. Modern NLP models like multilingual BERT and GPT support many languages. AVARC Solutions builds NLP solutions optimized for specific languages and business contexts, including Dutch.

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