In a scenario where a controller manages a large dataset, how does AngularJS ensure efficient data binding without performance degradation?

AngularJS ensures efficient data binding without performance degradation in scenarios with large datasets through Virtual DOM optimization. The Virtual DOM is a lightweight copy of the actual DOM that AngularJS uses to minimize DOM manipulations. Changes are first made to the Virtual DOM, and AngularJS smartly updates only the necessary parts of the actual DOM, reducing the impact on performance and improving the overall user experience. Understanding this optimization technique is crucial for handling large datasets in AngularJS applications.