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.
It’s not hard to find images to use online – just use an image search. This works well, but it’s worth noting that doing so isn’t necessarily legal. Most of the images you can find this way are owned by their original creators. This likely doesn’t matter if you’re only using something for private use, or even a school assignment, but if you intend to publish a work you need to make sure all rights are cleared.
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!"

Back in the ‘90s, Clip Art took over Word and PowerPoint files thanks to the thousands of office workers and students who used the images as a way to “improve” their documents. These days there are a large number of free images available on the web, and Microsoft is recognizing this by killing off its Clip Art portal in recent versions Word, PowerPoint, and Outlook. “The Office.com Clip Art and image library has closed shop,” explains Microsoft’s Doug Thomas. “Usage of Office’s image library has been declining year-to-year as customers rely more on search engines.”


Back in the ‘90s, Clip Art took over Word and PowerPoint files thanks to the thousands of office workers and students who used the images as a way to “improve” their documents. These days there are a large number of free images available on the web, and Microsoft is recognizing this by killing off its Clip Art portal in recent versions Word, PowerPoint, and Outlook. “The Office.com Clip Art and image library has closed shop,” explains Microsoft’s Doug Thomas. “Usage of Office’s image library has been declining year-to-year as customers rely more on search engines.”
Be careful: most Creative Commons images require attribution, meaning you need to give credit to the artist in order to use the image. Make sure you understand Creative Commons and other licenses 3 Popular Image Licenses You Need To Be Familiar With Before Using Someone's Photos 3 Popular Image Licenses You Need To Be Familiar With Before Using Someone's Photos Read More before using such images.

Microsoft’s gallery had an aesthetic, to be sure, and it wasn’t high art. But these images, cheesy as they are, were also incredibly useful in their time. It wasn’t easy to quickly find images in the dial-up age, and an entire industry of CD-ROMs you could buy for $50+ tried to fill that niche. You could buy those, or you could stick with what you already had: Microsoft’s clip art.
This is TERRIBLE! Besides being able to edit vector images like Will mentioned (which is important for those of us who don't have graphic artists available to create custom images or the budget or time to buy that service ad hoc), you could also search for style "families" (different graphics that were all in the same style). There was a huge range of files and styles in the collection and it was much faster to find what you need than to do a Bing search. Plus, you knew that everything there was free and free to use, without having to worry about CC license issues.
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