The `AVG()` function is a powerful tool in SQL for summarizing data. It allows you to quickly determine the average value of a numeric column within a table. This is crucial for understanding central tendencies in datasets. For example, in a sales database, you might want to find the average sales amount per month to identify trends. The `AVG()` function is part of a larger family of aggregate functions in SQL, including `SUM()`, `COUNT()`, `MAX()`, and `MIN()`, each serving a specific purpose in data summarization. These functions are essential for extracting meaningful insights from large datasets. Understanding how to use them effectively is a key skill for any SQL developer. A common use case is to calculate the average customer age in a customer database, or the average order value in an e-commerce platform.