What’s an algorithm, what’s the problem?

I was at re:publica the other day and someone confidentially asked me: what exactly is an algorithm. Why is Frau Merkel herself upset and concerned? So here’s the understandable explanation.

In the old days, decisions of all sorts were made wholly by humans. If you applied for a loan, for instance, the bank would look at your proposal, but also look at who you were. Had they heard of you or your family? What is your background? And so on.

But then something new happened.

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