The acronym 'NLP' refers to 'Natural Language Processing' in artificial intelligence. NLP combines computational linguistics with machine learning to enable computers to understand, interpret, and respond to human language. Its applications range from chatbots to language translation and sentiment analysis, playing a crucial role in making interactions between humans and machines more intuitive. By leveraging deep learning models, NLP helps machines process and analyze vast amounts of textual data, enhancing user experiences and automating various tasks.