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In this video tutorial, Kay, the AI Overlord, introduces Textual Inversion, a method that personalizes a Stable Diffusion model with your own images using only three to five samples. By feeding images into Stable Diffusion with Textual Inversion, the model can understand concepts and apply them to other images. For example, with four images of cat toys, Stable Diffusion can recognize the concept of a cat toy. Textual Inversion allows for personalization and customization of Stable Diffusion models.