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Even in our increasingly text-intensive times, the primary site of languageuse is situated, co-present interaction. It is primary ontogenetically andphylogenetically, and it is arguably also still primary in negotiating everydaysocial situations. Situated interaction is also the final frontier of NaturalLanguage Processing, where, compared to the area of text processing, verylittle progress has been made in the past decade, and where a myriad ofpractical applications is waiting to be unlocked. While the usual approach inthe field is to reach, bottom-up, for the ever next "adjacent possible", inthis paper I attempt a top-down analysis of what the demands are thatunrestricted situated interaction makes on the participating agent, and suggestways in which this analysis can structure computational models and research onthem. Specifically, I discuss representational demands (the building up andapplication of world model, language model, situation model, discourse model,and agent model) and what I call anchoring processes (incremental processing,incremental learning, conversational grounding, multimodal grounding) that bindthe agent to the here, now, and us.

What A Situated Language-Using Agent Must be Able to Do: A Top-Down Analysis