Album:
Use an album when you want to create a private and limited set of assets for a specific group of people or a time-limited project inside your organization.
It can be used to organize and share assets privately, and you can choose to add assets from the gallery or your My Disk to the album. Assets added from My Disk will only be available for you.
If assets that were not uploaded by yourself are added to a private album, they will still be visible in the gallery. However, assets that you have uploaded will be hidden from the gallery when added to your private album.
Albums can be shared with individuals both within and outside the organization, and they can also be made public for broader access (Public Gallery).
Collection:
Use a collection when you need to create a set of assets which can be used for the entire organization or for a larger group.
It can be considered as a static gallery, where a larger number of assets are gathered and shared with a broader audience.
Unlike albums, collections cannot be made private, so they are best suited for assets that need to be accessible to a larger amount of people within the organization or across different organizations.