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Ian Lamont, author of Google Drive and Docs in 30 minutes, discusses Office Compatibility Mode in Google Docs, allowing editing of Microsoft Word documents without needing Word. To enable this feature, you need the "Office editing for Docs, Sheets, and Slides" extension in Chrome. It is beneficial but has limitations, which Ian will elaborate on. Open the Chrome menu, select "Extensions" to locate and install the required extension for seamless editing in Google Docs.