Natural language processing is much more than just using semantic language models. It includes technology that enables computers to “understand” (that is, analyze and synthesize) by using linguistics: syntax, semantics, pragmatics, semiotics, and conversation analysis. Natural language processing will use general knowledge, background information, and context to make sense of what someone is saying. An artificial intelligence engine can add crucial abilities that allow IVRs to handle a wide range of natural conversation. Specific practical examples are provided.