This video demonstrates how to use permission sets with customer managed policies (CMPs) in AWS IAM Identity Center. It explains the concept of permission sets as role templates for defining policies across multiple AWS accounts. The instructor walks through a use case and provides a step-by-step demo on implementing CMPs with permission sets. This approach simplifies managing permissions across accounts by allowing centralized policy creation and reference in permission sets, eliminating the need to maintain long lists of resource ARNs in inline policies.