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In this video, Shrini discusses evaluating semantic segmentation using the Intersection over Union (IoU) approach. He explains that semantic segmentation involves classifying individual pixels in an image, rather than categorizing the image as a whole, providing an example with a rock sample to illustrate the classification of different minerals. Shrini highlights that conventional accuracy metrics, like those from scikit-learn, may not be effective for assessing performance in multi-class problems due to class imbalance. This limitation underscores the importance of using IoU as a more reliable metric for evaluating semantic segmentation tasks.