The Daily API allows developers to add text chat functionality to their video calls, providing a convenient and flexible solution for teams looking to enhance their communication experience. With the prebuilt UI, users can quickly enable chat in their video calls without needing extensive coding knowledge, while also offering advanced customization options through the daily-js library for more complex use cases. By utilizing the Daily API, developers can create custom video call experiences with seamless integration of text chat, enabling features like sharing lesson-related links or follow-up information instantly via chat, and providing a better way to share thoughts and questions without interrupting the current speaker.