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Whilst an impressive demonstration, how is it an example of machine learning? It looks like lexical analysis to me.

Same thoughts as mine. Seems like ML was just thrown in the title to get more hits.

It uses machine learning to parse the sentence, all modern lexical parsers are based on machine learning.

Aren't most of them rule based?

Not for years. State of the art has moved on from Eric Brill's dissertation 25 years ago.

Seems to line up with Stanford's part of speech tagger: http://nlp.stanford.edu:8080/parser/