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Back to Learn
KnowledgeLayer 3Classification & Understanding

Entity Extraction

Someone sends you a message with a name, a date, and a dollar amount buried in the middle.

You read the whole thing to find those three pieces of information.

Then you manually copy them into your system. One field at a time.

Every message. Every day. Hundreds of times.

Entity extraction does this automatically. It reads text and pulls out the structured pieces you actually need.

8 min read
intermediate
Relevant If You're
Processing incoming messages for key details
Converting unstructured text to structured data
Building systems that understand what matters in content

INTERMEDIATE - Builds on text processing. Enables knowledge graphs and data storage.

Context

Why entity extraction exists

Text is messy. Messages, documents, and conversations contain valuable information buried in natural language. Names, dates, amounts, locations, organizations. The data is there, but it is not structured.

Manual extraction does not scale. Reading every message to find the relevant pieces takes time you do not have. And humans miss things, especially when tired or rushing.

Entity extraction bridges unstructured and structured. It reads natural language and outputs clean, typed data your systems can actually use.

Unstructured Input

"Please process the refund for John Smith, account #4523, for $249.99. The original transaction was on March 15th."

Extracted Entities
PERSONJohn Smith
ACCOUNT#4523
AMOUNT$249.99
DATEMarch 15th
ACTIONrefund
Structured, typed, actionable
What It Is

A system that identifies and extracts named entities from text

Entity extraction is a form of natural language processing that locates and classifies named entities in text. Names of people, organizations, locations, dates, monetary values, and custom entity types specific to your domain.

Modern entity extraction uses AI models (often LLMs) to understand context. "Apple" in a recipe is different from "Apple" in a tech article. "Jordan" could be a person, a country, or a brand. The model uses surrounding text to determine which.

The power is not just finding entities but typing them correctly. Knowing that "March 15th" is a DATE and "$249.99" is an AMOUNT lets your systems handle each appropriately.

The Lego Block Principle

Any time text contains structured information you need to act on, entity extraction turns reading into data. The pattern is universal: text goes in, typed entities come out, and your systems know what to do next.

The core pattern:

Define the entity types relevant to your domain. Run text through extraction. Receive structured objects with type, value, and position. Route to appropriate handlers based on entity type.

Where else this applies:

Support tickets - Extract account numbers, dates, and issue types from incoming messages. Route to the right queue automatically.
Document processing - Pull names, dates, and amounts from contracts or invoices. Populate your system fields without manual entry.
Meeting notes - Extract action items, assignees, and deadlines from transcripts. Create tasks automatically.
Communication logs - Identify people, organizations, and topics mentioned. Build a searchable index of who discussed what.
Interactive: Watch Entity Extraction in Action

Extracting entities from messages

Click "Extract Next Message" to see how entity extraction converts unstructured text into typed, structured data.

Extraction Results
0/3 processed

Click below to extract entities from sample messages

Entity Types Detected
PERSON
ACCOUNT
AMOUNT
DATE
ACTION
EMAIL
ORG
Try it: Click "Extract Next Message" to see how entity extraction identifies and classifies key information from natural language text.
How It Works

Three approaches to extracting entities

LLM-Based Extraction

Most flexible, handles novel entity types

Send text to an LLM with a prompt describing what entities to find. The model returns structured JSON with entity types and values. Works for any entity type you can describe.

Strength

Handles ambiguity, custom types, context-dependent classification

Trade-off

Higher latency, costs per request, requires prompt engineering

NER Models

Pre-trained for common entity types

Named Entity Recognition models trained on standard entity types: PERSON, ORG, LOCATION, DATE, MONEY. Fast inference, no API calls. Works offline.

Strength

Fast, cheap, consistent, no external dependencies

Trade-off

Limited to trained entity types, less flexible with context

Pattern Matching

Deterministic for structured formats

Regular expressions and rules for predictable formats: phone numbers, emails, account IDs, dates in known formats. Fastest option when patterns are consistent.

Strength

Instant, free, 100% predictable output

Trade-off

Brittle with variations, requires maintenance, no context awareness

When to use which approach

Pattern matching when formats are predictable (account IDs, phone numbers, emails).

NER models for common entity types at scale with low latency requirements.

LLM-based when you need custom entity types or context-dependent classification.

Most production systems combine all three: pattern matching for structured formats, NER for common types, LLM for ambiguous cases.

Connection Explorer

"Extract the account number, date, and amount from this message"

A customer sends: "Please refund $249.99 to account #4523 for the March 15th charge." Without entity extraction, a human reads and copies each value. With entity extraction, the system instantly identifies AMOUNT, ACCOUNT, and DATE, then routes to the refund queue with all fields populated.

Hover over any component to see what it does and why it's neededTap any component to see what it does and why it's needed

Text Processing
Prompt Engineering
Entity Extraction
You Are Here
Entity Resolution
Structured Storage
Auto-Routed Request
Outcome
React Flow
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Data Infrastructure
Intelligence
Understanding
Outcome

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Upstream (Requires)

Text ProcessingPrompt Engineering

Downstream (Enables)

Entity ResolutionKnowledge GraphsStructured Data Storage
Common Mistakes

What breaks when entity extraction is poorly designed

Extracting without validation

You extracted "March 32nd" as a DATE because it looked like one. The downstream system crashed trying to parse an impossible date. Every extraction needs validation before use.

Instead: Validate extracted entities against type constraints. Dates must be real dates. Amounts must parse as numbers. Emails must match format.

Ignoring context for ambiguous entities

"Apple" got extracted as a company in a grocery order. "Jordan" was classified as a country when it was a customer name. Same text, wrong interpretation.

Instead: Use context-aware extraction (LLMs) for ambiguous entities. Include surrounding text in the extraction prompt. Add domain hints when available.

Hardcoding entity types

You built extraction for the five entity types you needed at launch. Six months later, you need a new type. The system requires a rewrite.

Instead: Design extraction to accept entity type definitions as configuration. New types should be a schema change, not a code change.

What's Next

Now that you understand entity extraction

You have learned how to pull structured data from unstructured text. The natural next step is understanding how to resolve entities across sources and link them together.

Recommended Next

Entity Resolution

How to identify when different records refer to the same real-world entity

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