It is an algorithm, but it's not what was traditionally call an algorithm because it relies on randomization and training data. Every step of the process is algorithmic according to the book defition:

> a precise rule (or set of rules) specifying how to solve some problem

The only difference is the rules are adjusted (trained) over time, rather than being written down once by a programmer.

It's a general trend in AI that:

1. Some problem in the AI-domain is solved with a new method (say, barcode scanning or handwriting recognition as historical examples).

2. This new technique is referred to as AI and not algorithmic.

3. Over time the ability of AI is pushed further.

4. At some point the method shifts from being understood as AI to being considered algorithmic.