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In this YouTube video tutorial, the presenter introduces a document understanding model called Layout LM, which helps in understanding documents and extracting relevant entities. This model is a state-of-the-art technology that simplifies document processing by extracting entities without the need for OCR or NER. Layout LM takes more information into account than traditional methods, making document understanding and entity extraction easier. The video will delve into the architecture of Layout LM and how it improves document processing.