NLP (Natural Language Processing) is artificial intelligence technology that enables computers to understand, interpret, and respond to human language naturally. Without NLP, chatbots only recognize exact keyword matches, requiring users to type commands precisely like 'check order status 12345'. With NLP, chatbots understand natural variations like 'where is my order?', 'track my package', or 'has my shipment arrived?' - all meaning the same thing. NLP allows chatbots to handle typos and misspellings, understand context and conversation flow, interpret intent behind messages, extract key information from unstructured text, recognize entities (names, dates, products, locations), handle complex multi-turn conversations, and provide human-like, contextual responses. This creates natural, frustration-free experiences where users communicate normally rather than learning special commands.