The program - called Vital - will vote on whether to invest in a specific company or not.
The firm it will be working for - Deep Knowledge Ventures -  focuses on drugs for age-related diseases.
It said that Vital would make its recommendations by sifting through large amounts of data.
The algorithm looks at a range of data when making decisions - including financial information, clinical trials for particular drugs, intellectual property owned by the firm and previous funding.
"On first sight, it looks like a futuristic idea but on reflection it is really a little bit of publicity hype," said Prof Noel Sharkey of the University of Sheffield.
"A lot of companies use large data search to access what is happening on the market, then the board or trusted workers can decide on the advice.
"With financial markets, algorithms are delegated with decisions. The idea of the algorithm voting is a gimmick. It is not different from the algorithm making a suggestion and the board voting on it."
According to Deep Knowledge Ventures, Vital has already approved two investment decisions.
The software was developed by UK-based Aging Analytics.

The company said the agreement included a guarantee that a conductor would be retained as the second member of staff on board new trains being rolled out next year.
The dispute led to several days of strikes over the summer.
Further industrial action was suspended earlier this month for more talks.
ScotRail said the RMT would now present the proposal to its members in a company-wide vote.
The company said discussions had also taken place with Aslef, the train drivers' union, and a similar in-principle agreement reached.
The RMT said it would make its position clear once the proposed deal has been discussed by its national executive on Tuesday.
ScotRail Alliance managing director Phil Verster said: "I am pleased that we have reached an in-principle agreement with the RMT and Aslef unions that, if formally agreed, will bring this dispute to an end.
"This will end the uncertainty for our people and our customers, and will allow us to concentrate on delivering the best possible service for Scotland, every single day.
"What we have put forward in our proposal will make our service more efficient and more effective while maintaining and enhancing the service we provide to our customers.
"It means that the new faster, longer, greener trains that will arrive in autumn next year really will be a revolution in how we deliver our service."
An RMT spokesman said: "After long hard hours at the negotiating table, and a sustained period of determined and solid industrial action involving our members, RMT's team will be reporting back to the unions executive tomorrow where the details will be considered in full.
"A further statement will be issued by the union after that executive meeting."

Colin Shields put Belfast ahead before Scott Aarssen levelled late in the first period.
However, second-period goals from Ryan Martinelli and Mark Garside left the Giants in control.
Alex Foster increased Belfast's lead to 4-1 before Steve Saviano completed the scoring with five minutes left.
Belfast have a game in hand on the Devils, who defeated Coventry Blaze 5-3 on Monday evening.
Cardiff are back in action against Blaze on Tuesday while the Giants are at home to Manchester Storm on Wednesday evening as the busy festive period continues.
The Giants took the lead after 15:52 on Monday with Shields netting after being set up by James Desmarais and Saviano.
Aarssen netted on the powerplay in the last minute of the first period but Martinelli restored the Giants' advantage on 27:41 after combining well with Saviano.
Garside then fired into the Braehead net on 33:50 before Foster's powerplay effort on 51:45 and Saviano's concluding goal on 55:18.
After Wednesday's game against Manchester, Braehead Clan are the visitors on Friday before Coventry Blaze take on the Giants at the SSE Arena on 2 January.
A venture capital firm has appointed a computer algorithm to its board of directors.
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ScotRail said it has reached an in-principle agreement with the RMT union to bring to an end a dispute over driver-only operated trains.
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Belfast Giants remain within four points of Elite League leaders Cardiff Devils after earning a 5-1 Boxing Day away win over Braehead Clan.