In this demo from Episode 2, Virgil shows how to optimize images using a free tool called Riot (Radical Image Optimization Tool). He uploads a large, 2.2 MB version of the Discussing Stupid album cover and highlights how the optimized version is much smaller in file size but hasn't lost any real visual quality. Virgil explains that optimizing website images is one of the easiest and most effective ways to improve page load times, thanks to modern image compression technology.