The Complete Guide to Data Labeling for Natural Language Processing (NLP)

Types of data labeling for NLP

Natural language processing (NLP) has become deeply ingrained in our daily digital interactions. Whether you‘re asking Siri a question, chatting with Alexa, or using grammar correction software, you‘re reaping the benefits of NLP.

But for NLP applications to keep improving, they need a steady diet of quality training data. That‘s where data labeling comes in.

In this comprehensive guide, we‘ll cover everything you need to know about data labeling for NLP, including:

  • What is data labeling and how it enables NLP models
  • Types of labeling used for key NLP tasks
  • Challenges faced when preparing training data
  • Approaches for sourcing high-quality NLP datasets
  • Whether to outsource or insource data annotation
  • Tips for choosing a data labeling partner

Let‘s dive in.

What is Data Labeling for NLP?

NLP relies heavily on machine learning to understand and generate natural language. Machine learning models detect patterns in large training datasets to "learn" how to complete tasks.

The more high-quality training data they have access to, the better NLP models become at recognizing patterns like grammar, sentiment and intent in human speech.

But raw data alone isn‘t enough. The data must be labeled first to add the critical context needed for an NLP model to learn effectively.

Data labeling is the process of adding tags, classifications or annotations to raw data. These labels provide extra meaning that allows machine learning algorithms to make sense of the data.

For example, consider the utterance:

"Bruce Springsteen was born in New Jersey in 1949."

To understand this statement, an NLP model needs to know that "Bruce Springsteen" refers to a [Person] entity, "New Jersey" is a [Location], and "1949" is a [Date].

Adding these kinds of entity labels gives the NLP model the necessary contextual understanding to comprehend the relationships between words and derive meaning.

So in summary, data labeling powers NLP models by transforming raw text, audio and other natural language data into machine-readable training datasets.

Now let‘s look at how the data labeling process enables NLP applications.

How Data Labeling Works for Training NLP Models

Data labeling is a multi-step workflow that converts raw data into highly-structured training data for NLP machine learning models:

Data labeling process for NLP

1. Raw Data Collection

The first step is amassing a large volume of raw natural language data. This data can come from sources like:

  • Social media posts
  • Call center transcripts
  • Customer support tickets
  • Surveys and interviews
  • Emails and chat logs
  • Product and service reviews
  • Subject matter expert recordings
  • Existing literature and content

The key is collecting a diverse range of real-world examples of natural conversation and language use. This allows NLP models to learn from how people actually communicate rather than stilted, manufactured dialog.

2. Data Cleaning and Preprocessing

Next, the raw data must be prepared and cleaned:

  • Removing duplicate entries
  • Fixing formatting inconsistencies
  • Anonymizing any private information
  • Normalizing spellings
  • Removing irrelevant entries or noise
  • Translating languages
  • Transcribing audio to text

Proper cleaning improves data quality while respecting privacy. It also minimizes potential labeling errors down the line.

Domain expertise in data extraction, web scraping and preprocessing is invaluable for transforming raw data into annotation-ready training data.

3. Data Labeling

Now the cleaned data is ready for human annotation. Trained analysts add labels like:

  • Transcribing audio files
  • Dividing long-form text into utterances
  • Marking intents like the speaker‘s goal or purpose
  • Flagging entities like people, places, companies
  • Noting sentiment and emotion

This extra context prepares the data for training NLP machine learning models.

4. Model Training

Finally, the finished labeled dataset is used to train or retrain the NLP model via supervised machine learning.

By learning from hundreds, thousands or even millions of human-labeled examples, NLP models gradually improve at making accurate predictions on new natural language data.

Over time, models continue to be retrained on fresh labeled data to keep improving.

Now that you understand how data labeling powers NLP models, let‘s explore the specific types of labeling used.

Types of Data Labeling Used in NLP

There are a variety of data labeling techniques used in NLP depending on the task at hand:

Types of data labeling for NLP

Let‘s look at some of the most common methods.

Utterance Labeling

In speech recognition, an utterance is a single contiguous unit of speech bounded by silence or pauses.

Utterance labeling involves segmenting large blocks of speech transcripts into individual utterances.

For example, dividing:

"What time is it in New York currently? Also, what‘s the weather forecast for tomorrow?"

Into utterances:

  • "What time is it in New York currently?"
  • "Also, what‘s the weather forecast for tomorrow?"

This allows NLP models to interpret single statements rather than long winding passages.

Utterance labeling is essential for training speech recognition and comprehension models.

Intent Labeling

Intent labeling means identifying what the speaker or writer wants or intends to achieve based on a given utterance.

For example:

Utterance: "What time does your store open?"

Intent: Check business operating hours

Teaching NLP models to derive intent empowers applications like chatbots and voice assistants to understand user goals and provide the right responses automatically.

Entity Labeling

Entity labeling refers to annotating objects within bodies of text or transcripts. This includes labeling:

  • People
  • Places
  • Organizations
  • Products
  • Brands
  • Events
  • Dates
  • Times
  • Money
  • Percentages

And more. For example:

"[Michael Jordan] was drafted by the [Chicago Bulls] in [1984]."

Flagging these kinds of entities gives NLP models critical context around who, what, when and where. This builds understanding of real-world objects, places and events.

Entity labeling improves functions like search, recommendations and question answering.

Sentiment & Emotion Labeling

Human language conveys subjective qualities beyond just objective facts. Tone, mood, and feeling are crucial parts of natural speech.

Sentiment and emotion labeling involves annotating qualities like:

  • Anger
  • Sadness
  • Happiness
  • Sarcasm
  • Fear
  • Confusion
  • Urgency

Which help NLP models pick up on the full context and meaning behind language.

This type of labeling powers applications like chatbots, marketing analytics, and customer support tools aiming to perceive the feelings behind natural conversation.

Relationship Labeling

Finally, relationship labeling links entities together to show connections and associations between them.

For example:

"[Steve Jobs], the founder and former CEO of [Apple Inc.], helped revolutionize the consumer technology industry."

Adds context that Steve Jobs is strongly associated with the company Apple in the role of founder and former CEO.

Relationship labeling builds NLP models‘ understanding of how objects and entities relate to each other logically.

Now that we‘ve covered core data labeling approaches for NLP, let‘s discuss key challenges faced when preparing machine learning training data.

Key Challenges in Labeling Data for NLP

While fundamental in concept, quality data labeling at scale has many complexities. Here are some of the top challenges faced when annotating datasets for NLP:

Sheer Volume of Data Required

Today‘s advanced NLP models need massive volumes of training data to perform well. We‘re talking hundreds of thousands or even millions of labeled examples.

Preparing datasets of this size is extremely time- and resource-intensive. This makes data labeling one of the biggest bottlenecks in NLP machine learning projects.

For example, Google‘s BERT NLP model was trained on a corpus of 3.3 billion words consisting of books and Wikipedia articles. Labeling datasets of this magnitude requires efficient workflows and tooling.

Ambiguous Words and Sentences

Human language is full of ambiguity that machines struggle to grasp. Sarcasm, irony, cultural references and double entendres all present challenges for NLP models.

Words like "stand" and "left" have different meanings across contexts that humans understand innately but must be explicitly labeled for machines:

  • "I can‘t stand when people are late."
  • "After the speech, people left the auditorium."

Without properly labeled data, NLP models fail to capture such nuances.

Understanding Emotion and Tone

It‘s not just what someone says, but how they say it. The subjective tone and emotion behind words also convey meaning.

Some sentiments NLP models strive to comprehend include:

  • Anger
  • Sadness
  • Happiness
  • Sarcasm
  • Confusion
  • Urgency
  • Hesitation

Labeling these fuzzy emotional elements can be challenging yet critical for applications aiming to communicate naturally.

Industry-Specific Terminology

Vocabulary varies widely between industries. Terms common in medicine like "morbidity" and "MRI" mean little in engineering.

NLP models designed for a certain field should train on data replete with relevant terminology. Generic datasets often lack necessary industry or domain nuance.

In summary, natural language is complex. But thoughtfully labeled NLP training data helps overcome linguistic challenges through supervised machine learning.

Next we‘ll explore approaches for sourcing high-quality training datasets.

Best Practices for Sourcing NLP Training Data

However you obtain it, training data is the rocket fuel for NLP machine learning. Here are tips for sourcing gold-standard datasets:

Prioritize Quality Over Quantity

Don‘t just amass vast volumes of junky, irrelevant data. Seek diverse but targeted corpuses providing meaningful examples.

Well-labeled data from a few key domains is better than poorly labeled generic data. Focus on snippets representative of the problem space.

Combine Organic and Intentionally Collected Data

Pull training data from a blend of naturally occurring text/conversations and purpose-built samples.

This balances the authenticity of organic language with the control of methodically collected data.

Perform Rigorous Quality Checks

Invest in thorough data cleaning, multi-stage reviews, selective redaction and quality assurance testing.

Monitoring agreement rates between labelers rooted out ambiguities and improved guidelines substantially in one project I led.

Continuously Validate and Refine

Check model progress on hold-out test datasets. Refine labeling as needed to address performance gaps.

Don‘t just label once and forget it. Training data needs ongoing tuning as models evolve.

Document Exhaustively

Meticulously catalog dataset sources, label definitions, annotators, revisions, metrics and other key details.

This kind of documentation enables reproducibility, regulatory compliance and continuous improvement.

In summary, care taken in sourcing diverse, representative data with institutionalized quality processes pays dividends in the form of better performing NLP models.

Now let‘s explore a key decision – whether to outsource data annotation or keep it completely in-house.

Outsourcing vs. Insourcing NLP Data Labeling

Once committed to an NLP project, a central question arises: who will handle data labeling?

There are two options:

Outsourced Data Labeling

Outsourcing data labeling means contracting the work out to a third-party. Reasons companies outsource NLP annotation include:

Speed – Experienced vendors have ready workforces that can label faster than building in-house teams. This accelerates deployments.

Domain Expertise – Vendors work with diverse labelers across specialties. This provides access to niche linguistic experts.

Cost Efficiency – Outsourcing shifts fixed upfront costs to flexible variable costs based on usage. This helps control budgets.

Enhanced Quality – Top vendors invest heavily in QA, management workflows, data security and tooling to deliver excellent training datasets.

Rapid Scaling – Labeling demands ebb and flow. Outsourced capacity can scale up and down to match needs.

However, some downsides to outsourcing NLP data labeling exist:

Data Security – You must ensure vendors follow security, compliance and confidentiality protocols.

Lack of Control – Outsourcers enable agility but offer less visibility and control than in-house teams.

Cost at High Volumes – Large multi-million record annotation projects can get expensive with third-party labelers.

In-House Data Labeling

Alternatively, you can hire dedicated data analysts and develop internal annotation tools and systems. Reasons to label NLP data in-house include:

Data Privacy – For maximum control over sensitive data, restricting access internally guarantees air-tight security.

Proprietary Data – Internal teams can safely work with proprietary datasets containing trade secrets or intellectual property.

Tighter Collaboration – Internal labelers communicate and collaborate better cross-functionally.

Lower Costs Long-Term – Though expensive initially, keeping work in-house has lower costs at high volumes.

Customizability – Internal solutions can be finely customized to specific needs. Outsourced tools offer less flexibility.

However in-house data labeling has downsides as well:

Slower Startup – Recruiting and training capable labeling teams takes significant upfront time before productivity.

Fixed Costs – In-house labelers represent fixed overhead costs, whereas outsourcing shifts expenses to a variable model.

Lack of Specialization – Developing specialized linguistic and domain expertise in diverse areas can be challenging internally. External vendors attract niche experts.

So how do you decide between outsourcing and insourcing data annotation? Here are key questions to consider:

  • How sensitive is the NLP training data? Highly confidential data may require internal labeling.
  • What volume of data needs annotation? Outsourcing works well for smaller datasets.
  • How quickly must the model be deployed? External labelers enable faster starts.
  • How domain-specific is the language? Vendors provide access to expert linguists.
  • What budget and resources can be allocated? Outsourcing shifts fixed costs to a variable model.

For smaller annotation projects, outsourcing can make sense to accelerate NLP deployments. But larger enterprises with big data needs often invest in internal data labeling teams and tooling.

There‘s no one-size-fits-all answer – consider costs, speeds, data sensitivity, and internal capabilities to decide the best path forward.

Tips for Choosing a Data Labeling Partner

If outsourcing NLP annotation, it pays to choose your partner carefully. Look for vendors that:

  • Have direct experience with similar NLP labeling projects
  • Understand the nuances of linguistic annotation
  • Offer flexible pricing models not penalizing for poor quality
  • Have strong data security, NDA enforcements, and access controls
  • Clean, prepare and preprocess data as part of the service
  • Actively monitor and optimize quality throughout projects
  • Provide transparency into the labeling process
  • Offer advanced annotation platforms tailored for NLP

For a comparison of top data labeling vendors, see our guide on choosing a data annotation partner.

Ready to Tackle Data Labeling for NLP?

In closing, data annotation serves as the fuel accelerating today‘s most advanced NLP models. Applying thoughtful human labels transforms raw data into highly-structured training data.

But data labeling requires tackling issues of scale, cost, quality and more. Whether outsourcing the work or building internal teams, choose partners strategically to maximize outcomes.

To learn more about data labeling for NLP machine learning initiatives, grab our free guide:

Or if you need help connecting with leading NLP data annotation vendors to accelerate your next project, please feel free to reach out.

We‘re glad to share vendor recommendations tailored to your specific data labeling requirements.

Thanks for reading!