Next.js Image Optimization provides automatic resizing, lazy loading, WebP format conversion, and CDN caching to improve website speed and SEO.The next/image component in Next.js comes with built-in optimizations, while using a traditional <img> tag requires manual optimization.Basic usage of next/image involves importing it and specifying the image source, alt text, width, and height.Next.js image optimization features include automatic lazy loading, responsive images, WebP conversion, and support for loading remote images.