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In this tutorial, the speaker demonstrates how to create charts with conditional formatting that update dynamically based on table data. For example, monthly sales versus forecasted sales are shown on a chart, with data points below the forecast displayed in red and data points above in green. Modifying values in the table automatically updates the chart's formatting. To set this up, start by converting data into a table and then insert a chart based on this table. Working with tables allows for dynamic updates in the chart.