Entity extraction identifies and pulls key details from user inputs or documents. From a sentence like "I need a refund for invoice number 4892 from March," the system extracts the invoice number and the date as structured data that can trigger a lookup or workflow.
Entity extraction is often the first step in converting unstructured user input into something a backend system can act on. Without it, an AI system can understand what someone is asking for but cannot do anything about it — because it cannot extract the specific values needed to query a database or trigger a process.
