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The video tutorial demonstrates how to extract text from an image file using Google Drive and Google Docs. By uploading the image file to Google Drive and opening it in Google Docs, the extracted text can be easily copied and used elsewhere. This method does not require any software installation, just a Google account. Various file formats such as PNGs, JPEGs, GIFs, or PDFs can be processed. The extracted text can also be downloaded as a Word document from Google Docs.