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In the video tutorial, the process of converting and compressing images on an iPad is demonstrated using the files app. The tutorial specifies that the device must be running iPad OS 16 for this method to work properly. By simply opening the files app and selecting the image to be converted and compressed, the user can reduce the file size for purposes such as emailing or uploading to websites. This process does not require any additional apps, making it a convenient and straightforward solution for managing image files on the iPad.