COMPEL Glossary / natural-language-processing-nlp
Natural Language Processing (NLP)
Natural Language Processing is a branch of AI focused on enabling computers to understand, interpret, and generate human language.
What this means in practice
NLP powers chatbots, document summarization, sentiment analysis, translation tools, contract analysis, and regulatory filing review. Before deep learning, NLP relied on rule-based approaches with limited accuracy. Modern NLP, driven by transformer architectures and large language models, can process text with remarkable sophistication. For organizations, NLP unlocks value from the estimated 80% of enterprise data that is unstructured text -- contracts, emails, customer feedback, regulatory filings, and internal documents. NLP use cases frequently appear in COMPEL use case portfolios because they combine high business value with increasingly mature technology.
Related Terms
Other glossary terms mentioned in this entry's definition and context.