What are The Algorithms that Power AI?

It is not uncommon to hear the word algorithm thrown around the topic artificial intelligence. But what are these algorithms and what they do? Read on to find out.


AI algorithm defined

Generally, algorithms are calculations or commands used in mathematics or computer software. These formulas instruct data to solve a set of problems.

With relation to artificial intelligence, algorithms are “a set of rules or instructions given to an AI, neural network, or other machines to help it learn on its own.”1

Whereas before it was a big deal if a computer could perform a task repeatedly, now computers are expected to perform, learn, and apply. The algorithms of the tech age, designed by software engineers, are created to facilitate this automated machine learning.


Basic algorithm types

While there are many algorithms currently used in AI, when it comes to machine learning, these three are the most used:



Variables are imputed to predict the value of a target. Regression codes are divided into linear and logistic regressions.

Example Uses: predicting retail sales, scoring insurance customers’ risk,


2. Decision Trees

These algorithms mimic the way humans make decisions. They basically draw a map of all possible paths along with results in each case.

Example Uses: automated customer communication, automated workflows


3. Clustering

Data is grouped together with like data.

Example Uses: product recommendations, search engine results


Algorithms in the real world

Algorithms can be complex and sophisticated, but so is the pay off and results that these codes offer.

More than ever, with the proliferation of new technology like smartphones and tablets, people are finding that algorithms are helpful and impactful – they are used in the apps we depend on for driving directions, give us shopping recommendations, and search results. They simplify our choices, improve system efficiency, and even provide us inspiration.


Source: We Are Social

Want to know what our algorithms and digital workforce can accomplish for you? Contact Novatio Solutions to see what services of ours you can implement in your business.

1 Davis, Sarah, “28 Artificial Intelligence Terms You Need to Know,” AI DZone.


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