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In this tutorial, the speaker discusses APIs (Application Programming Interfaces) and their role in data extraction, particularly from social media sites to personal analytics databases. An API is described as a set of rules for developers that facilitates communication with a programming language, similar to how a key unlocks a door. One common misconception highlighted is that APIs can extract data directly; however, they primarily retrieve data based on specific requests and are limited to accessible resources. For instance, if conducting price monitoring, an API will only provide the requested price information for items like pants, without any additional data.