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In this tutorial from Ace Linguistics, the host discusses word formation processes, specifically focusing on conversion, also known as zero derivation. Conversion is described as a simple process where a word shifts from one syntactic category to another without changing its form. For example, a noun can be used as a verb without any alteration. The video builds on previous discussions about derivational morphemes and compounding, explaining the key concept of how words can take on new grammatical roles while retaining their original structure.