Technical

Algorithmic system

System composed of algorithms, models and inputs producing automated outputs.

How the laws define this

Regulatory frameworks universally agree that an algorithmic system is a computational, automated, or data-driven process that handles inputs to produce outputs, perform tasks, or inform decisions. The primary point of divergence lies in the operational scope and sector-specific targeting of each instrument. Illinois Senate Bill 343 narrows the concept strictly to software or processes facilitating price coordination for residential rental units. Similarly, the Impact Assessment for Human Rights and Algorithms (IAMA) restricts its scope to computational processes informing actions within public-sector contexts. Conversely, Portaria MCTI nº 4.979, de 13 de julho de 2021 frames these systems across both public and private sector deployments, while the UNESCO Recommendation on the Ethics of Artificial Intelligence takes a broad structural view covering both deterministic rule-based and machine learning systems. Distinguishing itself from functional scope, the National Artificial Intelligence Document of the Islamic Republic of Iran isolates the concept as a specific operational layer distinct from underlying infrastructure and platforms.

Synthesised from the 5 statutory definitions below. Each one is quoted in full, with its source.

How jurisdictions differ

What is distinctive in each definition, binding law in force first.

Jurisdiction	Instrument	Status	What is distinctive
Brazil	Ordinance MCTI No. 4,979, of July 13, 2021	In Force	Adds associated processes to algorithms, models, and data inputs, framing transparency, robustness, and accountability for public and private AI deployments.
Illinois, United States	An Act to amend the Illinois Antitrust Act regarding residential rental price coordination	In Force	Limits to computational systems facilitating price coordination specifically for residential rental units.
Netherlands	Impact Assessment for Human Rights and Algorithms (IAMA)	In Force	Emphasizes full pipeline including data, models, outputs, and implementation in public-sector contexts for assisting, recommending, or autonomous acting.
UNESCO	Recommendation on the Ethics of Artificial Intelligence	In Force	Widens to include rule-based and machine learning systems, subjecting them to scrutiny for fairness, transparency, and accountability.
Iran	National Artificial Intelligence Document of the Islamic Republic of Iran	Adopted	Distinguishes as layer of AI models and applications from infrastructure and platforms to guide sectoral standards and regulatory treatment.

What it triggers

In Illinois, United States, it is banned for use in residential rental price coordination to ensure fair competition and protect tenants.source
Brazil Ordinance MCTI No. 4,979 frames policy considerations around transparency, robustness, and accountability in public and private sector AI deployments.source
The Netherlands IAMA uses it to identify, discuss and mitigate risks to fundamental rights in public-sector contexts.source

Definitions (5)

A set of algorithms, models, data inputs and associated processes that perform automated data processing or decision-making tasks; the Annex uses the term to frame policy considerations around transparency, robustness, and accountability in public and private sector AI deployments.

Portaria MCTI nº 4.979, de 13 de julho de 2021 (Ordinance amending the EBIA annexes)Definition 1 of 5

Any automated or semi-automated computational process that transforms input data into outputs used to inform decisions or actions within public-sector contexts. The IAMA definition emphasizes the full pipeline (data, models/throughput, outputs/implementation) and includes systems that assist, recommend, or autonomously act.

Impact Assessment for Human Rights and Algorithms (IAMA)Definition 2 of 5

A computational or algorithmic system, software, or process used in the sale, licensure, or provision of any service or product that facilitates price coordination for residential rental units.

Illinois Senate Bill 343: An Act to Amend the Illinois Antitrust Act Regarding Residential Rental Price CoordinationDefinition 3 of 5

The layer comprising AI models, applications, and their operational deployments that perform algorithmic tasks in specific use-cases. The Document distinguishes algorithmic systems from infrastructure and platforms to guide sectoral standards, testing, and regulatory treatment.

National Artificial Intelligence Document of the Islamic Republic of IranDefinition 4 of 5

A broader category encompassing rule-based systems and machine learning systems that process data to produce outputs or decisions, covering both deterministic algorithms and data-driven models subject to scrutiny for fairness, transparency, and accountability.

UNESCO Recommendation on the Ethics of Artificial IntelligenceDefinition 5 of 5

Not to be confused with

Artificial Intelligence System (AI System)

Artificial Intelligence System focuses on machine-based inference from inputs to generate outputs like predictions influencing environments, while algorithmic system emphasizes composition of algorithms, models, inputs, and processes.

AI-based systems

AI-based systems use algorithms or models for cognitive tasks, whereas algorithmic system covers broader automated data processing or decision-making including non-cognitive uses.

Questions and answers

What does algorithmic system mean in Brazilian AI policy?

It refers to a set of algorithms, models, data inputs and associated processes for automated tasks. The definition frames policy on transparency, robustness, and accountability in public and private AI.

Is algorithmic system banned anywhere for pricing?

In Illinois, United States, it is banned when used to facilitate price coordination for residential rental units to protect fair competition and tenants.

How does Netherlands assess algorithmic systems?

The Impact Assessment for Human Rights and Algorithms covers any automated process transforming data to inform public-sector decisions, emphasizing the full pipeline to mitigate fundamental rights risks.