Dipole-induced dipole interactions occur when a polar molecule with a permanent dipole induces a temporary dipole in a nearby nonpolar molecule. The electric field created by the polar molecule's dipole can distort the electron cloud of the nonpolar molecule, causing a shift in its electron distribution. This results in a temporary dipole that can interact with the permanent dipole, leading to an attractive force between the two molecules. These interactions are important in various chemical processes and play a role in solubility and molecular interactions. For example, water can induce dipoles in oxygen molecules, facilitating the dissolution of gases in liquids.