Natural Language Processing to Grow by $53 Billion by 2027

Research firm Technavio expects the global natural language processing (NLP) market to grow by $53.5 billion through 2027, at a compound annual rate of 30.22 percent.

The market, it said, is experiencing significant growth due to the increasing use of customer service chatbots powered by advanced language models like GPT-3. These models employ computational linguistics to understand unstructured data. However, challenges persist, including ambiguity and linguistics complexities, such as word sense disambiguation and semantics.

Technavio defines NLP as a subfield of artificial intelligence that enables computers to understand, interpret, and generate human language, making it an essential component of applications like sentiment analysis, speech recognition, and machine translation.

AI-enabled infrastructure development involves large-scale investments, delivering innovative solutions for call centers, predictive analytics, and risk mitigation, according to Technavio, which also reports that cloud-based NLP solutions offer scalability, reducing overall costs while enhancing customer experience. Verticals, it said further, benefit from AI-enabled infrastructure, including voice-operated GPS systems and digital assistants, employing speech-to-text dictation software for seamless human-machine interaction.

NLP solutions offer scalability, predictive analytics, and machine learning capabilities, enabling businesses to derive valuable insights from unstructured data, according to Technavio. However, implementing NLP solutions comes with certain risks and overall costs. These include the need for extensive data preprocessing, the complexity of deep learning models, and the potential for emotional and semantic nuances to impact text classification and summarization.

Despite these challenges, the NLP market presents significant growth opportunities. By harnessing the power of NLP, businesses can gain a competitive edge, streamline their operations, and deliver personalized customer experiences, Technavio said.

NLP technologies continue to revolutionize industries, offering AI-enabled solutions for verticals like healthcare, finance, and education, ultimately transforming business processes and redefining the future of technology, it concluded.

In its report, the company identified 3M, Alphabet, Amazon, Apple, Baidu, Cerebras Systems, Edifecs, Hewlett Packard Enterprise, Inbenta Holdings, IBM, IQVIA, LivePerson, Meta Platforms, Microsoft, NetBase Solutions, OpenAI, Oracle, SAP, SAS Institute, and SoundHound as industry leaders.