Natural Language Processing (NLP)
AI that enables computers to understand, interpret, and extract meaning from human language in AP documents.
Definition
Natural Language Processing is a branch of AI that enables computers to understand and extract meaning from human language. In AP, NLP is used to read invoice text, understand email communications from vendors, extract terms from contracts, and classify document types—going beyond simple pattern matching to semantic understanding.
Why It Matters
NLP enables AP systems to understand the meaning behind invoice descriptions, vendor emails, and contract terms—not just match patterns. This powers smarter coding, better matching, and automated communication.
Examples
Invoice description understanding
NLP reads "Plumbing rough-in per CO #7 - Building C 2nd floor" and correctly identifies it as a plumbing subcontractor invoice for a specific change order and location.
Vendor email processing
NLP reads a vendor email saying "Please note our new bank account ending in 4521" and flags it as a potential bank account change requiring verification.
How Nexus AP Helps
Nexus AP uses NLP to understand invoice descriptions, categorize vendor communications, and extract key information from unstructured documents.
Start Free TrialFrequently Asked Questions
How does NLP differ from OCR?
OCR converts images to text. NLP understands the meaning of that text. OCR reads "Net 30" from an invoice image; NLP understands it means payment is due in 30 days.
What AP tasks use NLP?
Invoice classification, description-based GL coding, vendor email triage, contract term extraction, and automated response generation.
Category
ai-automationReady to automate your AP?
See how Nexus AP can transform your accounts payable process.