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algorithm

in English: algorithm

basicwidespread

An algorithm is a finite sequence of unambiguous steps that, when followed precisely, yields a result within finite time for any allowed starting data of a given task type—whether executed by a human or a computer.

In plain terms

An algorithm is like a good recipe: it tells you what to start with, what to do in what order, and when you are finished. The difference is that a recipe allows some freedom ('salt to taste'), whereas an algorithm does not: every step is unambiguous so that a machine can execute it without thinking.

Every computer program is built from algorithms. An algorithm sorts your contacts alphabetically, an algorithm finds the shortest route on the map, and an algorithm decides which video you see next.

In artificial intelligence, the word can mean two things. In a traditional algorithm, a human writes the rules step by step. In machine learning, the human writes only the learning method, and the system derives the specific rules itself from a huge number of examples. This is why it is harder to say exactly why it decided as it did.

In the news, 'the algorithm' often refers to an entire decision-making system, such as a social media feed or a bank's credit assessor. In such cases, it is actually about a combination of many algorithms, data, and business objectives.

How it works

  1. Input: the algorithm receives some initial data, such as a list of names, two addresses, or a search term.
  2. Steps: executes predefined, clear operations in a specific order, such as comparing, calculating or swapping.
  3. Branches and repeats: depending on conditions, it takes different paths ("if larger, swap") and repeats certain steps for as long as needed.
  4. Stop and output: after a finite number of steps, it stops and gives a result, such as the sorted name list, the route, or the search results list.
  5. In a learning variant, the machine learning algorithm's output is not the direct answer but a trained model that later responds to new cases.

An everyday example

When your phone's map plans your route home, a routing algorithm compares countless possible paths in seconds and selects the fastest based on traffic. When a streaming service recommends a film in the evening, another algorithm tries to guess what you would like based on your previous choices.

Who is affected

everyoneAlgorithms curate the news, search results, recommended content, and ads you see every day.
jobseeker, new graduateAt many companies, algorithms pre-screen resumes before a human reviews your application. → Work & HR
bank customer, investorAlgorithms make or prepare decisions in credit assessment, fraud screening, and stock trading. → Money
developerSelecting the right algorithm determines whether the program will be fast, accurate, and cost-effective to run. → Code

A common misconception

MythThe algorithm is objective and impartial, since it is just mathematics.
In realityAlgorithms are designed by humans for goals set by humans and trained on data collected by humans. Thus, the designers' decisions and biases in the data also appear in the results.

Limits and risks

Similar, but not the same

Related concepts

Broader

computer science, informatika

Narrower

learning algorithm, recommendation algorithm, search algorithm, sorting algorithm, encryption algorithm

On the edge

program, modell, machine learning, artificial intelligence, adat

A brief history

The word originates from the Latinized form (Algoritmi) of the name of al-Khwarizmi, a Persian mathematician who worked in Baghdad in the 9th century. The idea itself is much older: Euclid already described the steps for calculating the greatest common divisor in antiquity. The precise mathematical definition of the concept was established by the 1936 works of Alan Turing and Alonzo Church.

Where things stand

As of late 2026, algorithms are present in every area of digital life, from search engines and banks to AI agents. Public debate and regulation increasingly focus on their transparency and accountability. In the EU, the Digital Services Act (DSA) does this for recommender systems, and the AI Act for systems that use artificial intelligence.

Status: 2026 November

In the news

Appears in 37 Agent Age stories; the curve shows weekly occurrence in the news magazine.

Also known as

algoritmus · algoritmusok · algorithm · algorithms · algo · procedure · computational procedure · az algoritmus

Sources

This entry was machine-edited and has undergone machine expert review; the “In the news” section updates automatically from Agent Age stories.