Understanding Natural Language Processing: NLP NLU NLG by Avani Shitole Oct, 2023

What Is Natural Language Understanding NLU ?


NLU plays a crucial role in dialogue management systems, where it understands and interprets user input, allowing the system to generate appropriate responses or take relevant actions. NLU goes beyond literal interpretation and involves understanding implicit information and drawing inferences. It takes into account the broader context and prior knowledge to comprehend the meaning behind the ambiguous or indirect language. Language generation is used for automated content, personalized suggestions, virtual assistants, and more.

If you produce templated content regularly, say a story based on the Labor Department’s quarterly jobs report, you can use NLG to analyze the data and write a basic narrative based on the numbers. It takes data from a search result, for example, and turns it into understandable language. Once a chatbot, smart device, or search function understands the language it’s “hearing,” it has to talk back to you in a way that you, in turn, will understand.

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Similarly, NLU is expected to benefit from advances in deep learning and neural networks. We can expect to see virtual assistants and chatbots that can better understand natural language and provide more accurate and personalized responses. Additionally, NLU is expected to become more context-aware, meaning that virtual assistants and chatbots will better understand the context of a user’s query and provide more relevant responses.

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Help your business get on the right track to analyze and infuse your data at scale for AI. When given a natural language input, NLU splits that input into individual words — called tokens — which include punctuation and other symbols. The tokens are run through a dictionary that can identify a word and its part of speech. The tokens are then analyzed for their grammatical structure, including the word’s role and different possible ambiguities in meaning. A basic form of NLU is called parsing, which takes written text and converts it into a structured format for computers to understand.

Natural Language Input and Output

While natural language understanding focuses on computer reading comprehension, natural language generation enables computers to write. NLG is the process of producing a human language text response based on some data input. This text can also be converted into a speech format through text-to-speech services. A subfield of artificial intelligence and linguistics, NLP provides the advanced language analysis and processing that allows computers to make this unstructured human language data readable by machines.


Semantics and syntax are of utmost significance in helping check the grammar and meaning of a text, respectively. Though NLU understands unstructured data, part of its core function is to convert text into a structured data set that a machine can more easily consume. Natural language generation is another subset of natural language processing.

How computers make sense of textual data

Once the language has been broken down, it’s time for the program to understand, find meaning, and even perform sentiment analysis. Two people may read or listen to the same passage and walk away with completely different interpretations. If humans struggle to develop perfectly aligned understanding of human language due to these congenital linguistic challenges, it stands to reason that machines will struggle when encountering this unstructured data. If a developer wants to build a simple chatbot that produces a series of programmed responses, they could use NLP along with a few machine learning techniques. However, if a developer wants to build an intelligent contextual assistant capable of having sophisticated natural-sounding conversations with users, they would need NLU.


Natural language understanding implements algorithms that analyze human speech and break it down into semantic and pragmatic definitions. NLU technology aims to capture the intent behind communication and identify entities, such as people or numeric values, mentioned during speech. The difference between natural language understanding and natural language generation is that the former deals with a computer’s ability to read comprehension, while the latter pertains to a machine’s writing capability. 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.

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In NLU, deep learning algorithms are used to understand the context behind words or sentences. This helps with tasks such as sentiment analysis, where the system can detect the emotional tone of a text. This involves breaking down sentences, identifying grammatical structures, recognizing entities and relationships, and extracting meaningful information from text or speech data. NLP algorithms use statistical models, machine learning, and linguistic rules to analyze and understand human language patterns. NLU is the ability of a machine to understand and process the or text presented in a natural language, that is, the capability to make sense of natural language. To interpret a text and understand its meaning, NLU must first learn its context, semantics, sentiment, intent, and syntax.

Learn how to extract and classify text from unstructured data with MonkeyLearn’s no-code, low-code text analysis tools. With natural language processing and machine learning working behind the scenes, all you need to focus on is using the tools and helping them to improve their natural language understanding. In this case, NLU can help the machine understand the contents of these posts, create customer service tickets, and route these tickets to the relevant departments. This intelligent robotic assistant can also learn from past customer conversations and use this information to improve future responses. NLG is another subcategory of NLP that constructs sentences based on a given semantic. After NLU converts data into a structured set, natural language generation takes over to turn this structured data into a written narrative to make it universally understandable.

In the age of conversational commerce, such a task is done by sales chatbots that understand user intent and help customers to discover a suitable product for them via natural language (see Figure 6). Sentiment analysis and intent identification are not necessary to improve user experience if people tend to use more conventional sentences or expose a structure, such as multiple choice questions. Have you ever wondered how Alexa, ChatGPT, or a customer care chatbot can understand your spoken or written comment and respond appropriately? NLP and NLU, two subfields of artificial intelligence (AI), facilitate understanding and responding to human language. Both of these technologies are beneficial to companies in various industries.


In healthcare, NLU and NLP are being used to support clinical decision making and improve patient care. For example, NLU and NLP are being used to interpret clinical notes and extract information that can be used for medical records. This technology is also being used to help clinicians diagnose patients and make informed decisions about treatments. Recent advances in AI technology have allowed for a more detailed comparison of the two algorithms. A number of studies have been conducted to compare the performance of NLU and NLP algorithms on various tasks. One such study, conducted by researchers from the University of California, compared the performance of an NLU algorithm and an NLP algorithm on the task of question-answering.

The combination of NLP and NLU has revolutionized various applications, such as chatbots, voice assistants, sentiment analysis systems, and automated language translation. Chatbots powered by NLP and NLU can understand user intents, respond contextually, and provide personalized assistance. To put it simply, NLP deals with the surface level of language, while NLU deals with the deeper meaning and context behind it. While NLP can be used for tasks like language translation, speech recognition, and text summarization, NLU is essential for applications like chatbots, virtual assistants, and sentiment analysis. Natural language understanding (NLU) and natural language generation (NLG) are both subsets of natural language processing (NLP).


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