Algorithmic efficiency measures the resources required by a method relative to the work or performance it delivers. Improvements can reduce computation, memory, communication, energy, or training data while maintaining or increasing capability.
Efficiency changes can alter infrastructure demand. If future methods accomplish the same work with less hardware, previously reserved capacity may be less valuable, while new capabilities or increased usage can offset those savings.
ELI5
Algorithmic efficiency means getting useful computer work done with fewer resources. A more efficient method can reach the same result using less time, energy, or memory.
For example, if a new method answers the same questions accurately using half as many processors, the service can handle more work with its existing machines.
How can algorithmic efficiency improve?
Better architectures, numerical methods, data selection, training procedures, compression, scheduling, and software implementation can reduce resource use.
Does greater efficiency always reduce total compute demand?
No. Lower cost can encourage more use, and new capabilities may create workloads that consume the available savings.

