Named Entity Recognition NER works by locating and identifying the named entities present in unstructured text into the standard categories such as person names, locations, organizations, time expressions, quantities, monetary values, percentage, codes etc. Spacy comes with an extremely fast statistical entity recognition system that assigns labels to contiguous spans of tokens.
Parts of Speech tagging is the next step of the tokenization. Once we have done tokenization, spaCy can parse and tag a given Doc. spaCy is pre-trained using statistical modelling. This model consists of binary data and is trained on enough examples to make predictions that generalize across the language. Example, a word following “the” in English is most likely a noun.