File formats are crucial for structuring and organizing data for computers to understand, process, and exchange efficiently.JSON is commonly used for data storage and exchange due to its clean and readable format, resembling JavaScript code.XML is designed for data representation, utilizing tags in a tree-like structure, suitable for web services and enterprise applications.CSV is ideal for storing tabular data in plain text, making it easy for data import/export and creating simple reports.Other formats like YAML focus on human-friendliness with indentation and Markdown is useful for creating web content and documentation.