Emotion recognition is one of the newest transformational tools in the area of (Natural Language Processing) NLP for AI to make out the emotional feel of text with great accuracy. While analyzing unstructured data, such as customer feedback, social media posts, and reviews, algorithms within NLP detect emotions like anger, happiness, sadness, and frustration. This helps the firms to understand their customers more emotionally and helps them develop suitable products, services, and strategies for engagement. AI-powered emotion detection enhances customer support systems through personalized service interactions and faster grievance redressal. It also supports marketing functions through trend identification and prediction of customer behavior. The satisfaction of users will improve, brand loyalty will be created, and competitiveness will increase as the companies use more and more emotion-aware systems. These come with their own challenges to be faced very seriously: cultural differences, interpretation of context, and data privacy. This article focuses on methodologies of emotion recognition in NLP, various applications, and ethical use, pointing out impacts on customer experience management and future directions in AI-driven sentiment analysis.
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