A family of Microsoft word processing software products for creating web, email, and print documents.
You can use text wrapping as suggested by Emily so that continuous text runs along one side or the other of a picture.
If the text next to the picture is not continuous with the text above or below the picture, though, there is a method that's much more stable and trouble-free. Insert a two-cell table, and put the image in one cell (formatted as in line with text) and the text in the other.
The borders of the cells in this example are turned off; the dashed gridlines show where the borders could be, but they don't print and can also be turned off for viewing in the Table Layout ribbon.
Obviously, you could put the text in the left cell and the picture in the right cell. If you want the text above or below the picture, use a table that has one column and two rows.