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In this video tutorial, the instructor demonstrates how to extract text from PDFs using Python. They start with a PDF file named "lorem.pdf," which contains lorem ipsum text and a hidden character, Waldo. The tutorial uses Visual Studio Code and begins by activating a virtual environment, although it's noted that following along without it is possible. The instructor installs the library "PyPDF2" (with capital letters) and updates pip. A script named "pdf_file_extract.py" is created, and the video highlights the import of "PdfFileReader" from the PyPDF2 library to create a PDF file reader object for text extraction.