AI Lesson 76 – Named Entity Recognition | Dataplexa

Lesson 76: Named Entity Recognition (NER)

Named Entity Recognition, commonly called NER, is a core task in Natural Language Processing that focuses on identifying important real-world entities mentioned in text.

Instead of just understanding words, NER helps machines understand who, what, and where the text is talking about.

Real-World Connection

Whenever Google highlights people, locations, or organizations in search results, or when resumes are automatically scanned for names and companies, Named Entity Recognition is working behind the scenes.

NER is widely used in news analysis, legal document processing, healthcare records, chatbots, and search engines.

What Is Named Entity Recognition?

Named Entity Recognition is the process of identifying and classifying entities in text into predefined categories.

  • Person names
  • Organizations
  • Locations
  • Dates and time
  • Money and quantities

The goal is not just to find words, but to understand their role in the sentence.

How NER Works

Modern NER systems use deep learning models, especially transformer-based architectures like BERT. These models analyze each word in context and predict whether it belongs to an entity.

For example, the word “Apple” can mean a fruit or a company, and the model decides based on surrounding words.

Simple NER Example

Let’s see how a pretrained model extracts entities from text.


from transformers import pipeline

ner_model = pipeline("ner", grouped_entities=True)

text = "Sundar Pichai is the CEO of Google headquartered in California"
entities = ner_model(text)

for entity in entities:
    print(entity)
  
{'entity_group': 'PER', 'word': 'Sundar Pichai'} {'entity_group': 'ORG', 'word': 'Google'} {'entity_group': 'LOC', 'word': 'California'}

Understanding the Output

Each detected entity includes its type and the text it represents. The model groups tokens belonging to the same entity and assigns a label.

  • PER — Person
  • ORG — Organization
  • LOC — Location

Why NER Is Important

NER converts unstructured text into structured data. This allows systems to perform search, analytics, and automation more efficiently.

Without NER, machines would only see text as words, not meaningful entities.

Common Use Cases

  • Resume and document parsing
  • Information extraction from news articles
  • Healthcare record analysis
  • Customer support automation

Challenges in Named Entity Recognition

  • Ambiguous words with multiple meanings
  • New or unseen entity names
  • Domain-specific entities

Fine-tuning models on domain-specific data helps improve accuracy.

Practice Questions

Practice 1: What does NER identify in text?



Practice 2: What type of entity is “Elon Musk”?



Practice 3: What helps NER models decide entity meaning?



Quick Quiz

Quiz 1: Which NLP task extracts names and locations?





Quiz 2: What entity type is “Microsoft”?





Quiz 3: NER helps convert what into structured data?





Coming up next: Machine Translation — how AI converts text from one language to another.