Natural language processing (NLP) significantly affects chatbots by enabling them to understand, interpret, and generate human language. NLP technologies allow chatbots to process user inquiries and respond contextually, making interactions feel more natural and conversational. By utilizing machine learning algorithms, chatbots can improve their accuracy over time, learning from user feedback to refine their responses. This capability enhances customer service efficiency, allowing businesses to address queries promptly. NLP also enables sentiment analysis, helping chatbots gauge user emotions and tailor responses accordingly, resulting in better user experiences and satisfaction.