This video demonstrates how to install and set up the AWS Toolkit extension in Visual Studio Code. The presenter walks through the process of installing the extension, connecting to AWS resources using IAM or Builder ID, logging into Amazon CodeCatalyst, and activating Amazon CodeWhisperer. The AWS Toolkit enables developers to easily manage AWS resources, access CodeCatalyst repositories and development environments, and utilize AI-powered code assistance directly within their IDE. By following these steps, developers can streamline their AWS development workflow and increase productivity.