NLP Explained: History, Use Cases and the Future of Natural Language Processing

Natural Language Processing, also known as NLP, is an aspect of artificial intelligence technology and a form of machine learning (ML), that gives computers capabilities to understand, analyze, and produce text in human language.

NLP utilizes complex computational techniques, algorithms, and linguistic rules to analyze and model human language data. Natural language processing fundamentally transforms interactions between computers and humans. Nowadays, from conversational AI platforms to sentiment analysis tools, NLP has become an integral part of many applications and systems.

The History of NLP (Natural Language Processing)

Research on NLP started after 1950, however many linguistic scientists had worked on fundamentals in the early 1900s. According to Stanford University documents, after World War II, NLP researchers initially aimed at automating language translation. Notable figures like Noam Chomsky critiqued early models for their inability to differentiate between grammatically correct and incorrect nonsense.

By the late 1950s, the field had split into symbolic and stochastic approaches, focusing on rule-based systems and statistical methods, respectively. After 1970, the landscape broadened to include logic-based paradigms and natural language understanding, exemplified by projects like SHRDLU. In this program, a computer manipulated blocks while answering questions in natural language, demonstrating remarkable accuracy in a limited domain.

The conversation below was produced as a part of a demonstration for SHRDLU:

Person: Put the littlest pyramid on top of it.

Computer: OK. (does it)

Person: Does the shortest thing the tallest pyramid’s support supports support anything green?

Computer: Yes, the green pyramid.

Person: What color is it?

Computer: By “it,” I assume you mean the shortest thing the tallest pyramid’s support supports.

Computer: Red

This capability to resolve object relationships showed the potential for advanced NLP applications.

From the 1980s onwards, empirical and probabilistic models gained traction. In recent decades, the internet’s growth and widespread computing have shifted NLP’s focus toward information extraction and consumer-level applications.

NLP helps computers communicate with humans in human-like languages

Computational Linguistics

Computational linguistics is a field at the intersection of computer science and linguistics, seeking to develop algorithms that enable computers to process and analyze human language.

In natural language processing (NLP), computational linguistics plays a pivotal role, facilitating the creation of models for understanding, interpreting, generating, and responding to language, ultimately aiming to improve human-computer interaction and automate various language-dependent tasks.

The Rise of Machine Learning

Machine learning started to grow rapidly in NLP, which provided a more efficient way to analyze and understand human and spoken language. Scientists started to train machines with different models like statistical models, such as Hidden Markov Models and Conditional Random Fields, which were used to identify patterns in language data.

Research in machine learning algorithms led to the development of Support Vector Machines in early 2000. This improved the accuracy of speech recognition and text classification tasks significantly. All of these practices paved the way for applying natural language processing, for customer sentiment, natural language generation NLG, and machine translation in different industries.

The Impact of Deep Learning

More recently, deep learning models have revolutionized NLP methods. Deep learning algorithms, such as Recurrent Neural Networks and Convolutional Neural Networks, have significantly improved the accuracy of language processing tasks. They have enabled machines to understand the context and meaning behind language and to generate human-like responses.

The advent of deep learning has also led to the development of language models such as BERT and GPT-3, which have the ability to understand and generate human language at a level previously unseen. These models have paved the way for more innovative applications of NLP, such as intelligent chatbots, AI virtual assistants, and automated writing tools.

Techniques and Methods of Natural Language Processing

Natural Language Processing (NLP) is a wide and complex field of computer science that involves making machines understand human language. The techniques and methods used to achieve this are diverse and ever-evolving. In this section, we will explore some of the most popular approaches used in NLP projects.

Machine Learning Algorithms

Natural Language Processing (NLP) is a wide and complex field of computer science that involves making machines understand human language. The techniques and methods used to achieve this are diverse and ever-evolving. In this section, we will explore some of the most popular approaches used in NLP projects.

Statistical Models

Statistical models are used in NLP to analyze and understand structured and semi-structured data. These models are designed to identify patterns, trends, and correlations in data by applying statistical techniques.

Examples of statistical models used in NLP include Information Retrieval models, Probabilistic Context-Free Grammars (PCFGs), Hidden Markov Models (HMMs), and Conditional Random Fields (CRFs).

Rule-based Approaches

Rule-based approaches involve a set of if-then statements used to analyze and understand natural language. These rules are based on linguistic rules and are hand-designed to help machines understand the meaning of different words and phrases. While rule-based approaches are useful for identifying simple patterns, they struggle with the complexity of natural language and are not effective for large datasets.

Deep Learning Techniques

Deep learning techniques, such as deep neural networks, are gaining popularity in NLP due to their ability to analyze complex language structures. These techniques use multiple layers of artificial neural networks to extract features from large amounts of unstructured data.

Examples of deep learning techniques used in NLP include Convolutional Neural Networks (CNNs), Recurrent Neural Networks (RNNs), and Long Short-Term Memory (LSTM) networks.

Overall, the techniques and methods used in NLP projects are diverse and require expertise in multiple domains. With the rapid advancement of technology, it is expected that NLP will continue to evolve and become an even more powerful tool for language understanding.

Natural language processing tools and frameworks, applications

NLP Tools and Approaches

Natural language processing (NLP) is enabled through various tools and approaches. This section explores some of the most commonly used ones in the industry.

NLP Software Libraries and Frameworks

One of the most pivotal tools for NLP practitioners is the use of software libraries and frameworks. These provide pre-built NLP algorithms and models that can be used to develop NLP applications. Some of the most popular NLP software libraries and frameworks include:



NLTK An open-source NLP library that provides a range of tools and resources for NLP, including corpora, lexical resources, and algorithms for text processing.
spaCy A Python-based NLP library that contains pre-built models for various NLP tasks, including named entity recognition, part-of-speech tagging, and dependency parsing.
Stanford CoreNLP A suite of natural language analysis tools that provides models for tokenization, part-of-speech tagging, named entity recognition, and sentiment analysis, among others.

Programming Languages for NLP Application

Various programming languages can be used for NLP applications, but some are preferred over others. Python is the most popular programming language used in NLP because of its ability to handle data efficiently and its extensive collection of NLP libraries and frameworks.

NLP APIs and Platforms

NLP APIs and platforms provide access to pre-built NLP models and tools, often through cloud-based systems. These are useful for developers who want to implement NLP in their applications quickly and with minimal effort. Some of the popular NLP APIs and platforms are:

  • Google Cloud Natural Language API
  • Azure Text Analytics API
  • Amazon Comprehend

Using these tools and approaches allows developers and practitioners to implement NLP more efficiently, enabling them to build solutions that are faster, more accurate, and more effective.

Natural Language Understanding and Text Analysis

According to the glossary of AI terms , Natural language understanding (NLU) is a subfield of NLP that aims to enable computers to understand human language in a way that is similar to how humans understand it. It involves the analysis of language models and various linguistic phenomena, such as syntax, semantics, and pragmatics, in order to capture the meaning and intent of natural language text.

Analyzing text, also known as text mining, is discovering valuable insights from unstructured text data. It involves the application of various NLP techniques and methods to extract information, identify patterns, and reveal relationships within textual data.

Both NLU and text analysis are crucial components of natural language processing systems and are used in a wide range of applications. For example, in sentiment analysis, NLU techniques are used to determine the sentiment of a piece of both text and speech processing in most speech recognition software. In contrast, analyzing text is used to identify the topics that are being discussed.


Text Analysis

Example application: Chatbots that can understand and respond to natural language queries from users. Example application: Identifying patterns and trends in customer feedback to improve products and services.
Key techniques: Named entity recognition, semantic role labeling, and machine translation. Key techniques: Text categorization, topic modeling, and clustering.
Use cases of natural language processing

Use Cases of Natural Language Processing

NLP has a wide range of practical applications across various industries. The following are some of the use cases:

1. Information Technology (IT)

NLP is used in information technology (IT) teams to provide quick and efficient support to employees. Chatbots and virtual assistants are powered by natural language processing algorithms to understand user queries and provide relevant knowledge resources.

This reduces the workload of IT service desk agents and improves employee satisfaction and productivity. Example applications include automating software provisioning and approvals for employees, troubleshooting common IT issues, unlocking accounts and resetting passwords, among others.

2. Human Resources (HR)

With the aid of Natural Language Processing the human resources department has achieved a lot of things, from hiring and firing to managing payroll and benefits. Example applications include employee onboarding and offboarding, PTO management, benefits enrollment, proactive notifications, and reminders, among others.

3. Facilities

NLP is used in facilities to simplify tedious, manual, and repetitive tasks of facility management teams, from common office maintenance to employee work requests. This helps improve collaboration across teams and departments, such as IT, HR, and Finance by automating workflows and streamlining processes.

Example applications include a centralized facility and maintenance requests hub, proactive communication, and updates, among others.

4. Customer Service & Support

NLP serves as the backbone of  AI-powered customer service to provide quick and efficient support to customers.

This reduces the workload of customer service agents and improves customer satisfaction. Example applications include sentiment analysis of customer feedback, intelligent routing of customer queries, and personalized recommendations for customers, among others.

5. Sales and Marketing

Leveraging NLP capabilities in sales & marketing to help with lead generation, lead routing to sales reps, helping with pipeline analysis, and forecasting. This reduces the friction in follow-up from sales when the user is ready to speak to them and improves the buyer journey. Example applications include maximizing marketing ROI, generating more pipeline, automating renewals, and upsell engagement, among others.

Overall, Natural Language Processing is a powerful technology that has numerous practical applications across various industries and domains. Its ability to process and understand human language has revolutionized the way we interact with computers and has enabled us to gain valuable insights from vast amounts of textual data.

Benefits of Natural Language Processing

Natural language processing (NLP) has become a powerful tool in various domains, providing numerous benefits to businesses and individuals alike.

Improved Productivity

NLP can significantly improve productivity through automation and streamlining of various tasks. By automating repetitive and time-consuming tasks, such as data entry and analysis, employees can focus on higher-value tasks, leading to increased efficiency and productivity.

Enhanced Decision-Making

NLP enables businesses to extract relevant insights from vast amounts of textual data, providing a better understanding of customer feedback, market trends, and other critical factors. By leveraging these insights, businesses can make informed decisions that lead to improved performance and outcomes.

Natural language processing algorithm

Actionable Insights from Text Data

NLP can analyze vast amounts of unstructured text data, such as customer feedback and social media posts, to provide valuable actionable insights. By understanding the sentiment and opinions behind the text, businesses can gain a better understanding of customer needs and preferences, leading to improved products and services.

Improved Customer Service

NLP can automate customer service tasks, such as AI chatbots and virtual assistants, providing customers with quick and efficient support. This leads to increased satisfaction and loyalty, as customers receive immediate responses and resolutions to their inquiries.

Efficient Data Management

NLP techniques are used to extract and categorize data, enabling businesses to efficiently manage vast amounts of textual data. By extracting relevant information and categorizing it, businesses can improve data management and organization, leading to better decision-making and outcomes.

Automated Translation (Multilingual Services)

NLP can facilitate the automated conversion of textual information, enabling businesses with multinational customers to expand their reach to a global audience on their own. By providing accurate and efficient translations of human languages, businesses can communicate with customers in their native language, leading to increased engagement and sales.

Challenges of Natural Language Processing

Despite the tremendous progress made in the field of NLP, significant challenges still need to be addressed. One of the major challenges is ambiguity, where the same words or phrases can have different meanings depending on the context. Another challenge is context understanding, where computers struggle to understand the meaning of a sentence beyond its literal interpretation.

Furthermore, language variations such as dialects and slang can pose difficulties for NLP models. Additionally, ethical considerations, such as privacy and bias, need to be taken into account when developing NLP applications.

While ongoing research and development are focused on addressing these challenges, it is essential to remain vigilant and aware of potential issues that may arise.

The Future of Natural Language Processing

The potential applications of NLP are vast, and its future looks promising. With the advancements in machine learning and deep learning models, along with the continuous development of more sophisticated NLP models and algorithms, we can only expect AI-powered language technology to become more versatile and capable of understanding human language with greater accuracy and nuance.

As we continue to explore the possibilities of NLP technology, it is crucial to maintain ethical considerations and ensure that NLP is utilized responsibly and with the utmost respect for privacy and individual rights.

Natural language processing is a powerful technology with vast potential for improving various industries and revolutionizing the way we interact with machines. As we continue to enhance our use of NLP, we must do so responsibly and ethically, ensuring that we maximize its potential for the greater good.


Undoubtedly, Natural language processing (NLP) has revolutionized the way humans interact with computers and its behind the scene of conversational AI chatbots. NLP has become an indispensable tool for many industries, from healthcare to customer service, social media analysis to finance, NLP is utilized to solve complex problems and extract valuable insights from vast amounts of textual data.

In this article, we explored the evolution of NLP systems, its techniques, tools, and approaches, and its practical applications. We discussed the benefits of implementing NLP, including enhancing productivity, enabling automation, and improving decision-making.

However, we also highlighted the challenges associated with NLP, such as ambiguity, context understanding, and ethical considerations, emphasizing the ongoing research and efforts to address these issues. Request a free conversational AI demo today!

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