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Jay from Kodian demonstrates how to use Power Automate to transfer data from a SharePoint list item to a Word document to create a new document. The process involves setting up the Microsoft Word connector and populating a Word template. The example includes a SharePoint list with multiple columns such as title and description with rich text data. The flow is triggered when a new item is modified, based on specific conditions, and can include attachments. This action is straightforward and can be customized to suit different scenarios.