Language serves many functions, but in particular: 1) Language as communication: language is used to transfer mental models (or generally, information) from one mind to another. Requires multiple agents, theory of mind, and having something to talk about (grounding).
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There are a few more as well. I think a system can be said to be capable of "language understanding" if it can use language to perform at least one of these functions, preferably all three. Naturally, all of these require strong forms of external grounding.
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I find it helps to think of language as an interface to our mental models. To communicate, we re-encode them as language, and they get decoded back into mental models at the far end. That way, language-less intelligence still works fine.
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I was always frustrated by this last one. I tought that we could improve our way/speed to think by changing the language used. But it seems that the information transformation rate is universal... (https://www.sciencemag.org/news/2019/09/human-speech-may-have-universal-transmission-rate-39-bits-second …)
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This is true. Language essentially limits your vocabulary, which in turn limits on your imagination because you can't even think in that direction due to non-availability of words as pointed out in a Ted talk by
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I read Pinker to learn that thinking takes mentalese but not so much of language unless of course we're mentally articulating or something like that.
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