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To extract data points from charts in image form for analysis, you can use the GRABIT tool available on MATLAB's File Exchange. For instance, if you have an image of a stress-strain curve for aluminum and steel, you need to obtain data points for further modeling. To download GRABIT, follow the link provided in the video description or search for it in the MATLAB Add-Ons section. To add it in MATLAB, open MATLAB, click on Add-Ons, select Get Add-Ons, and search for GRABIT. After adding it, you can find the file in your folder. Running this file will provide a user interface for data extraction.