InfluxDB is being used to monitor air quality and set up an alert system to protect against wildfires, specifically in areas susceptible to wildfires. The Air Quality Template, a prepackaged configuration, includes a dashboard to visualize data and a Telegraf configuration to write data to InfluxDB. A connection to the AirNow API is established using Telegraf, allowing for real-time monitoring of air quality metrics such as PM2.5 levels and ozone quality. An alert system can be set up to notify users when air quality reaches dangerous levels, with InfluxDB sending alerts to various endpoints including Slack. The setup process includes installing InfluxDB, Telegraf, and the Air Quality Template, as well as configuring the AirNow API connection and setting up the alert system.