In the era of artificial intelligence, algorithms not only improve the performance of public management, but also bring potential governance risks. Under the domination of business logic, the algorithm company may implant the algorithm into the public sector in order to create more opportunities for obtaining more financial funds influences, and then act as the algorithm shadow bureaucrat. The algorithmic shadow bureaucrat expels the public value, dispels the public power and dominates the public sector with the capital logic, which will seriously deviate from the human value and hollow the public sector increasingly. The relationship between government and algorithm shadow bureaucrat is essentially a principal agent relationship. Therefore, to eliminate the potential negative impact of algorithm shadow bureaucracy on the government, it is very necessary to reduce the algorithm asymmetry and avoid government’s over-reliance on algorithms.