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The video tutorial explains how to extract text from an image file using Google Drive and Google Docs. Users need a Google account to begin. First, they navigate to Google Drive, where they can drag and drop their image files (PNGs, JPEGs, GIFs, or PDFs). After uploading, right-click on the image and select "Open in Google Docs." This action displays the original image with the extracted text underneath it. Users can then copy the text for use elsewhere or download it as a Word document or PDF via the file menu. The process is easy and requires no additional software.