A machine learning algorithm is a computational model that enables systems to learn from data and improve their performance over time without being explicitly programmed for every task. These algorithms analyze input data, identify patterns, and make predictions or decisions based on that analysis. They are essential in various AI applications, such as natural language processing, image recognition, and recommendation systems. By leveraging large datasets, machine learning algorithms can adapt to changing environments and enhance their accuracy, making them pivotal in advancing AI technology and solving complex problems across different industries.