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In this YouTube video tutorial, the presenter introduces the Layout LM model, a document understanding model that helps extract relevant entities from documents. This model is considered state-of-the-art and offers a more efficient way of processing documents compared to traditional methods like OCR and NER. The Layout LM model is able to extract more information from documents beyond just OCR and NER, making document understanding and entity extraction easier. The video will explore how the model works and its impact on document processing.