If you mean your own artwork, then you'd take a picture of it, upload it to your computer (make sure you know where you're saving it), then select Insert > Picture in Word, browse in the location where you saved the photo, click the picture, and insert. If you mean an image from the internet or something, you can just save it to your computer and basically follow the rest of the steps above.
I liked it for the simple inserting of visual effects for creating newsletters. Pictures do enhance communication and the ease of using a word document and gathering an image made this task easy. Now having to go outside of my document to find the extra spice my documents need makes this less fun. I have always used animated images that were less than artistic but were entertaining. Like others I will miss this service, but I understand progress is not always comfortable.
There has been talk about removing Microsoft Office completely, since OpenOffice and Google has free "equivalent" products. My school district has already removed Microsoft Office from classroom student computers. Only teacher computers and computer lab computers have Microsoft installed. The future of Microsoft Office looks bleak! Their motto must be, "One step forward, two steps back!"
As an artist I resent some people's assumption that original art from my abilities and imagination, which I have sacrificed a lot to develop, should somehow default to public property. If we require artists to participate in a money economy their art belongs to them. Copying images and not following the copyright owners permissions to the letter is stealing, outright. And deep pockets like Disney has taught individuals that the hard way.
Why is it that every time Microsoft make another edition of their software it makes it harder and harder to use. Seriously frustrated. Clipart was so darn useful. I was always ungrouping it to pull apart and use just some little images or to recolour to match my document / presentation. now I have to go and try and completely redraw things. This is a complete waste of time. Microsoft, you continue to be morons. Just once, I'd like to see an upgrade that actually added value and didn't make it harder for people to use. User UNfriendly. Seriously considering heading back to an earlier version of PowerPoint just so I can get that feature back.