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Kay, the AI Overlord, introduces Textual Inversion in this tutorial video, a method that allows you to personalize a Stable Diffusion model with your own images using only three to five samples. By feeding images into Stable Diffusion with the Textual Inversion model, it allows the model to understand the core concepts of the images. This advancement opens up possibilities for training Stable Diffusion to recognize and apply personal styles to other images.