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Tom Mullini demonstrates how to use optical character recognition in Google Drive. By adding an image to your Google Drive, you can search for text within the image. He uses a meme generator to create an image, renames it, saves it, uploads it to a folder, and then demonstrates how to search for text within the image. This feature allows for easy recognition of text in images. Tom encourages viewers to comment or tweet him with any questions, and to like, share, and subscribe to his channel.