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In this Software Keep video tutorial, the importance of font embedding is discussed. When you use a fancy font in a document and send it to someone who doesn't have that font, it will be replaced with a generic font. Font embedding allows you to include the fonts used in your document so that it looks the same across different systems. To enable font embedding, go to preferences, then save, and select "embed fonts in the file." This ensures that the document will display as intended regardless of the recipient's system.