Named Entity Recognition (NER) Explained

 In the world of Natural Language Processing (NLP), one of the most exciting techniques is Named Entity Recognition (NER). It helps computers understand and identify important pieces of information from text—just like how humans quickly spot names, dates, or places when reading an article.


🔹 What is NER?

Named Entity Recognition (NER) is the process of identifying and classifying key information (entities) in text into predefined categories such as:

  • Person → “Sachin Tendulkar”

  • Organization → “Google”, “UNICEF”

  • Location → “Hyderabad”, “India”

  • Date/Time → “15th August 2025”, “Monday”

  • Other entities → Money, Percentages, Product names

For example:
Sentence: “Elon Musk is the CEO of Tesla, based in the United States.”
NER Output:

  • Elon Musk → Person

  • Tesla → Organization

  • United States → Location


🔹 How Does NER Work?

NER involves a few main steps:

  1. Text Preprocessing

    • Clean the data (remove special characters, extra spaces, etc.).

  2. Tokenization

    • Break sentences into words (tokens).

    • Example: “Barack Obama visited India” → [“Barack”, “Obama”, “visited”, “India”]

  3. Model Training

    • Use Machine Learning (ML) algorithms like Conditional Random Fields (CRF), Hidden Markov Models (HMM), or modern Deep Learning models such as LSTMs and Transformers (like BERT).

  4. Entity Classification

    • Each word is assigned a label:

      • Barack Obama → Person

      • India → Location


🔹 Applications of NER

NER is widely used across industries:

  • Search Engines → Google highlights entities to improve results.

  • Healthcare → Extracting patient names, diseases, and medicines from records.

  • Finance → Identifying company names, stock tickers, or transaction details.

  • Customer Support → Chatbots identifying names, dates, or order IDs.

  • News & Media → Categorizing people, events, and locations.


🔹 Why is NER Important?

  • Helps machines “read” and “understand” text like humans.

  • Extracts structured data from unstructured text.

  • Saves time by automating manual tasks.

  • Improves business insights and decision-making.


🔹 Final Thoughts

Named Entity Recognition is a powerful NLP technique that turns raw text into structured, meaningful information. It’s the backbone of many AI-powered applications like chatbots, search engines, and digital assistants.

At iHub Talent Training Institute, students get hands-on training with NER models using Python and libraries like SpaCy and NLTK, helping them build real-world applications.

🚀 In short: NER teaches machines to find the “who, what, and where” in any text.

Learn Best Artificial Intelligence Course in Hyderabad

Read More:

Using OpenAI API for AI Projects

🤖 What Is Machine Learning and How Does It Work?

Decision Trees vs. Random Forests: Understanding the Basics

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