Since JPEG, improvements have included better lossless compression (entropy coding) of the DCT coefficients; deblocking filters, which blur the image across block boundaries; predicting the contents of DCT blocks from their neighbours, especially prediction of sharp edges; variable DCT block sizes, rather than a fixed 8x8 grid; the ability to compress some DCT blocks more aggressively than others within the same image; encoding colour channels together, rather than splitting them into three completely separate images; and the option to synthesise fake noise in the decoder, since real noise can't be compressed.
You might be interested in this paper: https://arxiv.org/pdf/2506.05987. It's a very approachable summary of JPEG XL, which is roughly the state of the art in still-image compression.