Sentiment analysis gives a business or organization access to structured information about their customers’ opinions and desires on any product or topic. Natural language understanding is a field that involves the application of artificial intelligence techniques to understand human languages. Natural language understanding aims to achieve human-like communication with computers by creating a digital system that can recognize and respond appropriately to human speech. NLP is a type of artificial intelligence that focuses on empowering machines to interact using natural, human languages. It also enables machines to process huge amounts of natural language data and derive insights from that data.

What is NLU known for?

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NLU systems empower analysts to distill large volumes of unstructured text into coherent groups without reading them one by one. This allows us to resolve tasks such as content analysis, topic modeling, machine translation, and question answering at volumes that would be impossible to achieve using human effort alone. Our assessment of data-driven conversational commerce platforms identifies Haptik as a chatbot producer that can only provide natural language capacity for product discovery. As a result, algorithms search for associations and correlations to infer what the sentence’s most likely meaning is rather than understanding the genuine meaning of human languages. Last, but certainly not least, is conversational search which often provides the backbone to the other three use cases. Conversational search allows end users to ask questions in natural language and then provide the most relevant result (public or non-public).

Definition & principles of natural language understanding (NLU)

As demonstrated in the video below, mortgage chatbots can also gather, validate, and evaluate data. NLU skills are necessary, though, if users’ sentiments vary significantly or if AI models are exposed to explaining the same concept in a variety of ways. However, NLU lets computers understand “emotions” and “real meanings” of the sentences. In short, NLU brings a lot of varied business value; however, it is important to remember that NLU is only a subset of NLP capabilities, which are required to provide “smart” answers to “smart” questions. NLU only tells half of the story, or rather, it only asks the question, a smart search engine delivers the answer. Natural language understanding, also known as NLU, is a term that refers to how computers understand language spoken and written by people.

  • In this section, we will introduce the top 10 use cases, of which five are related to pure NLP capabilities and the remaining five need for NLU to assist computers in efficiently automating these use cases.
  • Chatbots are powered by NLU algorithms that understand the user’s intent and respond accordingly.
  • It is the process of producing meaningful phrases and sentences in the form of natural language from some internal representation.
  • One of the main advantages of adopting software with machine learning algorithms is being able to conduct sentiment analysis operations.
  • Improvements in computing and machine learning have increased the power and capabilities of NLU over the past decade.
  • Using a tokenizer to break up the input into individual words, or “tokens.”

Thus, NLP models can conclude that “Paris is the capital of France” sentence refers to Paris in France rather than Paris Hilton or Paris, Arkansas. Among the different approaches to NLU, the most popular one currently relies on classification algorithms to classify inputs. NLU can be used to analyze unstructured data like customer reviews and social media posts. This information can be used to make better decisions, from product development to customer service.

Get Started with Natural Language Understanding in AI

Chatbots are powered by NLU algorithms that understand the user’s intent and respond accordingly. Having useful information to improve your products and services brings more conversions. From giving a distinctive voice to your digital platforms, social media platforms, vlogs, audio blogs, and podcasts—one unique voice is enough to build a strong identity of your brand.


Both of these technologies are beneficial to companies in various industries. Natural language understanding currently has two prominent roles in contact centers. Chatbots are automated agents that use NLU to interact with consumers in online chat sessions. They can initiate the session by greeting the customer, solve simple problems, and collect information that can be forwarded to a human agent. Natural language understanding is also used in some interactive voice response systems to allow callers to interact with the system using conversational language. This can provide a better customer experience but is more complicated to implement.

Why You Need AI for Business Decision Making with Wharton Online

Natural Language Understanding is a branch of artificial intelligence . NLU is one of the main subfields of natural language processing , a field that applies computational linguistics in meaningful and exciting ways. Botpress can be used to build simple chatbots as well as complex conversational language understanding projects. The platform supports 12 languages natively, including English, French, Spanish, Japanese, and Arabic.

Note, however, that more information is necessary to book a flight, such as departure airport and arrival airport. The book_flight intent, then, would have unfilled slots for which the application would need to gather further information. Our open source conversational AI platform includes NLU, and you can customize your pipeline in a modular way to extend the built-in functionality of Rasa’s NLU models. You can learn more about custom NLU components in the developer documentation, and be sure to check out this detailed tutorial. Therefore, their predicting abilities improve as they are exposed to more data. The procedure of determining mortgage rates is comparable to that of determining insurance risk.

Techopedia Explains Natural Language Understanding (NLU)

Automated reasoning is a subfield of cognitive science that is used to automatically prove mathematical theorems or make logical inferences about a medical diagnosis. It gives machines a form of reasoning or logic, and allows them to infer new facts by deduction. A year later, in 1965, Joseph Weizenbaum at MIT wrote ELIZA, an interactive program that carried on a dialogue in English on any topic, the most popular being psychotherapy.


This includes receiving what is nlus, understanding them, and generating responses. It is the process of producing meaningful phrases and sentences in the form of natural language from some internal representation. Whether it’s simple chatbots or sophisticated AI assistants, NLP is an integral part of the conversational app building process.

What is NLP?

For example, a phrase such as “short sale” can have a very specific meaning in finance while “short sale” when referencing a process or a cycle, has a much less nefarious meaning. NLU models need finessing to be able to distinguish between two such utterances. If you’re looking for ways to understand your customers better, NLU is a great place to start. You can learn about their needs, wants, and pain points by analyzing their language. NLU is becoming a powerful source of voice technology that uses brilliant metrics to drill down vital information to improve your products and services.

What is the meaning of NLU?

Natural language understanding is a branch of artificial intelligence that uses computer software to understand input in the form of sentences using text or speech. NLU enables human-computer interaction.

We, at Engati, believe that the way you deliver customer experiences can make or break your brand. Let’s just say that a statement contains a euphemism like, ‘James kicked the bucket.’ NLP, on its own, would take the sentence to mean that James actually kicked a physical bucket. But, with NLU involved, it would understand that the sentence was a crude way of saying that James passed away. The parse tree breaks down the sentence into structured parts so that the computer can easily understand and process it. In order for the parsing algorithm to construct this parse tree, a set of rewrite rules, which describe what tree structures are legal, need to be constructed.

  • NLU uses speech to text to convert spoken language into character-based messages and text to speech algorithms to create output.
  • Natural language understanding is used by chatbots to understand what people say when they talk using their own words.
  • The successful demonstration of SHRDLU provided significant momentum for continued research in the field.
  • This is achieved by the training and continuous learning capabilities of the NLU solution.
  • Advanced applications of natural-language understanding also attempt to incorporate logical inference within their framework.
  • Artificial intelligence provide businesses with novel solutions for a wide variety of problems.