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In this video tutorial, the process of embedding an image into an Illustrator document is demonstrated. To do this, first, a screenshot is taken and then imported into Illustrator by going to File, then Place. The user has the option to either embed the image into the document or link it. Embedding the image means it is stored within the document, while linking it keeps a reference to the original file. The choice between embedding or linking depends on the user's preferences.