Natural Language Understanding (NLU) is a subfield of artificial intelligence (AI) and a component of natural language processing (NLP) that focuses on machine reading comprehension. It involves the interpretation and generation of human language by machines. NLU systems are designed to understand the meaning of words, phrases, and the context in which they are used, rather than just processing individual words.
For instance, a chatbot powered by NLU can understand and respond to customer queries in a conversational manner, such as: ‘How can I track my package?’