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Digital image technology is penetrating into various fields of people's life, and it has been very mature and can effectively store and transmit data. Moreover, there are still various researches on image recognition, the core of this technology. The algorithm is mainly based on computer technology to obtain the target image for different scene categories, thus completely replacing the traditional classification form. Because of the limitations of traditional identification technology, there are some problems in the actual use. It does not depend on the prior knowledge requirements and can carry out complex feature space division. In this paper, an image recognition computer system is established by introducing an improved neural network algorithm. The algorithm is designed and tested, and the results show it has lower image recognition error rate. Subsequently, this research result is applied to the actual scene for testing. The test results show that the improved neural network optimization algorithm can make the extracted features more accurately expressed in the image processing, which is more effective than the traditional algorithm. [ABSTRACT FROM AUTHOR]