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In this video, the speaker discusses the concept of APIs (Application Programming Interfaces) and their role in data extraction, specifically from social media websites into analytics databases. An API is defined as a set of rules that facilitates communication between software applications, similar to a key that unlocks a door. The speaker clarifies a common misconception that APIs can extract any data; rather, they are limited to retrieving specific information as defined by the resource. For instance, if someone wishes to monitor prices, they can only access the price of pants through the designated web API. The video ultimately highlights the importance of understanding how APIs function within data-related tasks.