# Position: We Need An Algorithmic Understanding of Generative AI

arXiv: https://arxiv.org/abs/2507.07544 · HTML: https://mlsanity.com/paper/2507.07544/

## Key facts

- Cited by 5 papers in the map (data through 14 Oct 2026).
- Builds on 86 of its 132 references that are in the map.
- First posted on arXiv 10 Jul 2025.

## Builds on (most cited first, 30 of 86)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [A Unified Approach to Interpreting Model Predictions](https://mlsanity.com/paper/1705.07874/) (2017)
- [Feature Pyramid Networks for Object Detection](https://mlsanity.com/paper/1612.03144/) (2016)
- [Axiomatic Attribution for Deep Networks](https://mlsanity.com/paper/1703.01365/) (2017)
- [Tree of Thoughts: Deliberate Problem Solving with Large Language Models](https://mlsanity.com/paper/2305.10601/) (2023)
- [AutoGen: Enabling Next-Gen LLM Applications via Multi-Agent Conversation](https://mlsanity.com/paper/2308.08155/) (2023)
- [Scaling LLM Test-Time Compute Optimally can be More Effective than Scaling Model Parameters](https://mlsanity.com/paper/2408.03314/) (2024)
- [Similarity of Neural Network Representations Revisited](https://mlsanity.com/paper/1905.00414/) (2019)
- [Transformer Feed-Forward Layers Are Key-Value Memories](https://mlsanity.com/paper/2012.14913/) (2020)
- [Energy and Policy Considerations for Deep Learning in NLP](https://mlsanity.com/paper/1906.02243/) (2019)
- [Interpretability in the Wild: a Circuit for Indirect Object Identification in GPT-2 small](https://mlsanity.com/paper/2211.00593/) (2022)
- [Language Models Don't Always Say What They Think: Unfaithful Explanations in Chain-of-Thought Prompting](https://mlsanity.com/paper/2305.04388/) (2023)
- [What Does BERT Look At? An Analysis of BERT's Attention](https://mlsanity.com/paper/1906.04341/) (2019)
- [In-context Learning and Induction Heads](https://mlsanity.com/paper/2209.11895/) (2022)
- [Progress measures for grokking via mechanistic interpretability](https://mlsanity.com/paper/2301.05217/) (2023)
- [Quantifying Attention Flow in Transformers](https://mlsanity.com/paper/2005.00928/) (2020)
- [Towards Automated Circuit Discovery for Mechanistic Interpretability](https://mlsanity.com/paper/2304.14997/) (2023)
- [The Mythos of Model Interpretability](https://mlsanity.com/paper/1606.03490/) (2016)
- [Attention is not not Explanation](https://mlsanity.com/paper/1908.04626/) (2019)
- [Transformer Interpretability Beyond Attention Visualization](https://mlsanity.com/paper/2012.09838/) (2020)
- [Large Language Models Struggle to Learn Long-Tail Knowledge](https://mlsanity.com/paper/2211.08411/) (2022)
- [What you can cram into a single vector: Probing sentence embeddings for linguistic properties](https://mlsanity.com/paper/1805.01070/) (2018)
- [Function Vectors in Large Language Models](https://mlsanity.com/paper/2310.15213/) (2023)
- [Transformers Learn Shortcuts to Automata](https://mlsanity.com/paper/2210.10749/) (2022)
- [Chain of Thought Empowers Transformers to Solve Inherently Serial Problems](https://mlsanity.com/paper/2402.12875/) (2024)
- [Analyzing the Structure of Attention in a Transformer Language Model](https://mlsanity.com/paper/1906.04284/) (2019)
- [Transformer Dissection: A Unified Understanding of Transformer's Attention via the Lens of Kernel](https://mlsanity.com/paper/1908.11775/) (2019)
- [Attribution Patching Outperforms Automated Circuit Discovery](https://mlsanity.com/paper/2310.10348/) (2023)

## Built on by (most cited first, 5 of 5)

- [RelP: Faithful and Efficient Circuit Discovery in Language Models via Relevance Patching](https://mlsanity.com/paper/2508.21258/) (2025)
- [On the geometry and topology of representations: the manifolds of modular addition](https://mlsanity.com/paper/2512.25060/) (2025)
- [Empowering Real-World: A Survey on the Technology, Practice, and Evaluation of LLM-driven Industry Agents](https://mlsanity.com/paper/2510.17491/) (2025)
- [A Compositional Framework for Open-ended Intelligence](https://mlsanity.com/paper/2606.15386/) (2026)
- [An Investigation of the NeurIPS and ICML 2025 Position Tracks](https://mlsanity.com/paper/2608.16894/) (2026)

## Abstract (arXiv)

What algorithms do LLMs actually learn and use to solve problems? Studies addressing this question 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 proposes AlgEval: a framework for systematic research into the algorithms that LLMs learn and use. AlgEval aims to uncover algorithmic primitives, reflected in latent representations, attention, and inference-time compute, and their algorithmic composition to solve task-specific problems. We highlight 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 candidate algorithms, and bottom-up tests of these hypotheses via circuit-level analysis of attention patterns and hidden states. The rigorous, systematic evaluation of how LLMs actually solve tasks provides an alternative to resource-intensive scaling, reorienting the field toward a principled understanding of underlying computations. Such algorithmic explanations offer a pathway to human-understandable interpretability, enabling comprehension of the model's internal reasoning performance measures. This can in turn lead to more sample-efficient methods for training and improving performance, as well as novel architectures for end-to-end and multi-agent systems.