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AIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

29. July 2025

NLP (Natural Language Processing) (Glossary)

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NLP (Natural Language Processing) is part of the field of artificial intelligence and also plays an important role in digital transformation and in eCommerce and digital commerce.

NLP is a technology that enables computers to understand, process and respond to human language. This means that computers "understand" what we say or write and can respond to it in a meaningful way. Behind this are many algorithms that recognise language, spelling, grammar and also contexts.

An illustrative example of this is a chatbot in an online shop: If a customer asks "When will my order be delivered?" via chat, the chatbot understands the question, filters out the important information and gives a clear answer - around the clock, without the need for human intervention. The automatic translation of websites or emails is another practical example of NLP (Natural Language Processing).

The use of NLP makes work processes more efficient: Companies save time, can respond quickly to customer requests and analyse large volumes of data - all with a high level of reliability. We are encountering NLP applications more and more frequently in everyday life, for example in voice assistants such as Alexa or Siri.

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