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In the tutorial, you learn about the Intersection over Union (IoU) function, which is essential for evaluating the performance of object detection algorithms. The IoU metric assesses how well the predicted bounding box aligns with the ground truth bounding box by calculating the ratio of the area of intersection to the area of union. The union represents the total area covered by both boxes, while the intersection represents the area where they overlap. By analyzing this ratio, one can determine if the algorithm's output is successful in localizing the object. The video also hints at utilizing IoU in a subsequent video to enhance the object detection algorithm's performance.