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Power BI developers create interactive dashboards by using a variety of visualizations, such as bar charts, pie charts, maps, and custom visuals, which users can interact with. They implement features like drill-downs, filters, slicers, and dynamic interactions, allowing users to explore data from multiple angles. Power BI’s DAX and Power Query are used to create calculated columns, measures, and dynamic data models that adjust based on user inputs. The Power BI developers goal is to make the dashboard intuitive and user-friendly while providing actionable insights at a glance for informed decision-making.