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The video tutorial explains how to extract text from an image file using Google Drive and Google Docs. It outlines a simple process that doesn't require additional software but does require a Google account. Users should go to Google Drive, upload their image file (supported formats include PNGs, JPEGs, GIFs, and PDFs), and then right-click on the file to open it in Google Docs. Once opened, the original image will appear with the extracted text displayed underneath. The extracted text can be copied for use elsewhere, and users also have the option to download the document as a Word file or PDF from the file menu.