Acharya Prashant explains that the ego is not inherently evil, as one does not choose to be born with it. However, the problem arises when the ego masquerades as the Soul (Atma). This pretense is a lie that causes self-harm. He emphasizes that the term 'I' should strictly be used for the Soul, yet people mistakenly use it to refer to the ego. To correct this, one should observe the ego's reactions objectively. For instance, instead of saying 'I feel bad,' one should say 'the ego feels hurt.' This practice of right observation separates the true self from the ego's conditioning. He uses the example of the character Mogambo, who spoke of himself in the third person, as a lesson in distancing oneself from the ego's fluctuations of joy and sorrow.