Algorithmic monitoring, such as Datadog's outlier detection and anomaly detection, uses machine learning to automatically identify abnormal values in user traffic, critical business metrics with recurring fluctuations, and deviations from normal group behavior. These features can help detect issues in infrastructure and applications more effectively than static thresholds or rate-of-change alerts, reducing false positives. By combining anomaly detection and outlier detection, users can gain more comprehensive insights into their systems' performance.