The Automatic Linker plugin simplifies link management in Obsidian by automatically converting plain text file references into wiki links based on existing files in your vault. It ensures seamless linking by scanning note contents and formatting them upon saving. The plugin also enhances usability with features like GitHub and Jira URL formatting, namespace resolution for better link accuracy, and alias consideration for more flexible referencing. Users can configure base directories to structure links efficiently and apply automatic namespace restrictions to prevent unwanted conversions.