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In this video tutorial, Octoparse explains the concept of APIs (Application Programming Interfaces) and their role in data extraction. An API is described as a set of rules that facilitates communication between developers and programming languages, similar to a key unlocking a door. The speaker clarifies a common misconception that APIs can extract data independently; rather, they are designed to retrieve specific data defined by the available resources. For instance, if you need to conduct price monitoring, an API can provide the requested data, such as the price of pants, but may not grant access to other related information. The tutorial aims to provide insights on using APIs effectively for data integration and analytics.