Amazon Verified Permissions is a new service that simplifies authorization strategies for applications. It offers centralized policy storage and decouples authorization from code, allowing developers to focus on feature development. The service provides fine-grained permissions management, supports role-based and attribute-based access control, and integrates with existing identity providers. Through a demonstration using a sample pet store application, the video showcases how to create and manage policies, implement role-based access, and apply attribute-based conditions for more granular control. Amazon Verified Permissions helps address challenges like role explosion and enables easier auditing and compliance management.