The STREAM function is used to process data from a streaming live table or view, which is a table or view that contains data that has been added only since the last pipeline update. Streaming live tables and views are stateful, meaning that they retain the state of the previous pipeline run and only process new data based on the current query. This is useful for incremental processing of streaming or batch data sources. The customers table in the query is a streaming live table, which means that it contains the latest data from the source. The STREAM function enables the query to read the data from the customers table incrementally and create another streaming live table named loyal_customers, which contains the customer IDs of the customers with high loyalty level. References: Difference between LIVE TABLE and STREAMING LIVE TABLE, CREATE STREAMING TABLE, Load data using streaming tables in Databricks SQL.