Natural Language Processing (NLP) is a subfield of artificial intelligence focused on enabling computers to understand and generate human language. Key components of NLP include Natural Language Understanding (NLU) and Natural Language Generation (NLG), with techniques like tokenization, part-of-speech tagging, named entity recognition, and sentiment analysis. Advanced NLP methods leverage deep learning techniques and transformer models to significantly improve language comprehension and application in areas like machine translation and chatbots.