What Is Natural Language Understanding NLU ?

how does nlu work

The goal here is to minimise the time your team spends interacting with computers just to assist customers, and maximise the time they spend on helping you grow your business. When you’re analyzing data with natural language understanding software, you can find new ways to make business decisions based on the information you have. Natural language processing is the process of turning human-readable text into computer-readable data. It’s used in everything from online search engines to chatbots that can understand our questions and give us answers based on what we’ve typed. By implementing NLU, chatbots that would otherwise only be able to supply barebone replies can use keyword recognition to amplify their conversational capabilities. NLU-powered chatbots can provide instant, 24/7 customer support at every stage of the customer journey.


While many businesses these days already understand the importance of chatbot deployment, they still need to make sure that their chatbots are trained effectively to get the most ROI. And the first step is developing a digitally-enhanced customer experience roadmap. Primarily focused on machine reading comprehension, NLU gets the chatbot to comprehend what a body of text means. NLU is nothing but an understanding of the text given and classifying it into proper intents.

What is Natural Language Understanding?

Overall, NLU technology is set to revolutionize the way businesses handle text data and provide a more personalized and efficient customer experience. Many people have such kind of conversations with their personal assistants and other types of chatbots. Round the clock assisting abilities of chatbots have increased their use across many industries, especially for enhancing customer service. According to statistics, chatbots can save upto 30 % of the cost in customer service by speeding up the response time.

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NLU software doesn’t have the same limitations humans have when processing large amounts of data. It can easily capture, process, and react to these unstructured, customer-generated data sets. Additionally, NLU establishes a data structure specifying relationships between phrases and words. While humans can do this naturally in conversation, machines need these analyses to understand what humans mean in different texts.

The Significance of Natural Language Understanding (NLU) Training Data

With NLU, you can extract essential information from any document quickly and easily, giving you the data you need to make fast business decisions. Chatbots are necessary for customers who want to avoid long wait times on the phone. With NLU (Natural Language Understanding), chatbots can become more conversational and evolve from basic commands and keyword recognition. With the advent of voice-controlled technologies like Google Home, consumers are now accustomed to getting unique replies to their individual queries; for example, one-fifth of all Google searches are voice-based.

how does nlu work

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