An algorithm is a set of rules or a computational procedure that is typically used to solve a specific problem. In the case of Vidillion, Inc. v. Pixalate Inc. an algorithm is defined as “one or more process(es), set of rules, or methodology (including without limitation data points collected and used in connection with any such process, set of rules, or methodology) to be followed in calculations, data processing, data mining, pattern recognition, automated reasoning or other problem-solving operations, including those that transform an input into an output, especially by computer.” With the increasing automation of services, more and more decisions are being made by algorithms. Some examples are; criminal risk assessments, predictive policing, and facial recognition technology.
See also: AI
[Last updated in April of 2022 by the Wex Definitions Team]