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In this tutorial, Kevin introduces the new transcribe functionality in Word Online. Unlike dictation, which converts spoken words to text in real time, transcribing allows users to record audio in advance and upload it to Word for transcription. This feature is particularly useful for interviews or lectures, as it can generate a written transcription of the conversation. Additionally, the transcribe tool can identify different speakers within the audio, enhancing the clarity of the transcription. The tutorial promises a demonstration of how the transcribe feature works.