AI & Technology

What Is an Algorithm?

An algorithm is a finite, step-by-step set of instructions for solving a problem or completing a task. Computers run algorithms for everything from sorting lists to recommending videos, but the idea is older than computers — a recipe or the method for long division are algorithms too.

Algorithms in Everyday Tools

Every calculator follows an algorithm: for example, a loan calculator applies a fixed sequence of formulas to the amount, rate, and term to produce a monthly payment.

Algorithms vs. AI

A traditional algorithm follows rules written by people. Machine learning uses algorithms to learn rules from data.

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.