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In this video, Prajita from Excel Jams demonstrates how to create dynamic chart titles in Excel. She shows how to set up a formula in the chart title bar to reference cell values for the title, making it update automatically when the cell values change. This allows for flexibility in customizing the chart title to include a combination of text and cell values. Making changes to the referenced cells will instantly update the chart title, making it easy to create dynamic and informative chart titles.