This segment introduces the task of predicting the next word in a sentence as a more complex alternative to simple text classification. It then explores the limitations of two extreme approaches to processing text data with neural networks: processing entire documents (leading to fewer training examples and varying document sizes) and processing single words (missing crucial contextual information). The speaker highlights the need for a compromise between these extremes to effectively learn from text data. This segment introduces recurrent neural networks (RNNs) as a solution that processes one word at a time while incorporating memory of previous inputs. The core concept of feeding the network's output back to its input is explained, demonstrating how the network retains context from previous words. The segment concludes by defining RNNs and setting the stage for a deeper dive into their mechanics. This lecture introduces recurrent neural networks (RNNs) for text processing. Unlike simpler methods, RNNs handle sequential data by feeding their output back as input, creating "memory" of previous words. This allows them to predict the next word in a sentence, a more complex task than simple sentiment analysis. While effective for short sequences, RNNs suffer from vanishing gradients, limiting their long-term memory. The next lecture will explore solutions to this limitation.