Setting up an Azure Function to send Chuck Norris jokes via WhatsApp using Twilio's API can be achieved with just a few steps. The process begins by creating an Azure account, setting up a Twilio account, and installing the WhatsApp Sandbox Channel. Then, an Azure Function is created, which involves selecting a C# template, naming the function, and adding dependencies for NuGet packages. The function includes two files: one to fetch a random joke from the Chuck Norris API using an HTTP client, and another to handle incoming API calls in the run.csx file. Once the function is set up, it can be added to the Twilio API for WhatsApp configuration, allowing users to receive jokes via WhatsApp messages. The example also highlights the potential of Azure Functions for small sections of code that can be reused across different projects, and their ability to scale automatically on the Consumption plan.