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In this video tutorial, Ian Lamont discusses Office Compatibility Mode for Google Docs, a feature that allows users to edit Microsoft Word documents without needing the program itself. The first step to using this feature is to ensure you have the "Office editing for Docs, Sheets, and Slides" extension installed in your Chrome browser. This extension acts as a plugin to enhance the functionality of Google Docs. While this feature is convenient, there are limitations to consider when using Google Docs in Office Compatibility Mode.