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What are Algorithms?

 , updated on December 29, 2015
An algorithm is a procedure for solving a problem or making a decision. The term tends to be applied to computer code that has undergone a rigorous design process to achieve a sophisticated or highly optimized solution. In some cases, an algorithm is the best known solution for a particular problem.

Black Box

The word algorithm is often used to suggest that code is too complex for people to understand. In other words, algorithms are commonly viewed as a black box that can only be understood in terms of its inputs and outputs.
Although algorithms can be complex, they can always be understood. Businesses that implement decision automation algorithms are typically expected by stakeholders and regulators to understand what they are doing.
Overview: Algorithms
TypeInformation Technology
DefinitionComputer logic that solves a problem or makes a decision.
ValueMaking decisions or solving problems at high speed.
RiskA tendency to view algorithms as magic.
Implementing algorithms without proper due diligence and control.
Related ConceptsArtificial Intelligence

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