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Position: We Need An Algorithmic Understanding of Generative AI

Oliver Eberle
Thomas McGee
Hamza Giaffar
Taylor Webb
Ida Momennejad

July 15, 2025

What algorithms do LLMs actually learn and use to solve problems? Studies addressing this ques tion are sparse, as research priorities are focused on improving performance through scale, leaving a theoretical and empirical gap in understanding emergent algorithms. This position paper pro poses AlgEval: a framework for systematic re search into the algorithms that LLMs learn and use. AlgEval aims to uncover algorithmic primi tives, reflected in latent representations, attention, and inference-time compute, and their algorith mic composition to solve task-specific problems. Wehighlight potential methodological paths and a case study toward this goal, focusing on emergent search algorithms. Our case study illustrates both the formation of top-down hypotheses about can didate algorithms, and bottom-up tests of these hypotheses via circuit-level analysis of attention patterns and hidden states. The rigorous, system atic evaluation of how LLMs actually solve tasks provides an alternative to resource-intensive scal ing, reorienting the field toward a principled un derstanding of underlying computations. Such al gorithmic explanations offer a pathway to human understandable interpretability, enabling compre hension of the model’s internal reasoning perfor mance measures. This can in turn lead to more sample-efficient methods for training and improv ing performance, as well as novel architectures for end-to-end and multi-agent systems.

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