Yes, dogs are more intelligent than we give them credit for. As man's best friend, they really are a best friend. They sympathize with us when we are feeling sad by laying their heads on our laps. They are happy when we are happy and make us feel good. It is not surprising to think that dogs can understand us. I think we all sort of knew it already.
Dogs are definitely more intelligent than many humans give them credit for. It is not surprising that scientists are discovering that dogs process language in a similar manner that humans do. Dogs have long been trained for many uses that help man such as using them as guide dogs and police dogs.
Most people view dogs and any animal really as being incapable of processing things, thinking, feeling emotions, etc. It is clear in the way they react that they are capable of those things. Without being able to directly communicate with animals, it is difficult for us to fully understand just how intelligent they are.
Yes, scientific evidence suggests that dogs can understand human speech and therefore are much more intelligent than we give them credit for. By utilizing brain scans, the research shows that dogs process language in a similar way that humans process language. While obviously they are unable to communicate using the language, it is incredible to learn their abilities to understand human speech.