The exponential growth of algorithms has made establishing a trusted relationship between human and artificial intelligence increasingly important. Algorithm systems such as chatbots can play an important role in assessing a user’s credibility on algorithms. Unless users believe the chatbot’s information is credible, they are not likely to be willing to act on the recommendation. This study examines how literacy and user trust influence perceptions of chatbot information credibility. Results confirm that algorithmic literacy and users’ trust play a pivotal role in how users form perceptions of the credibility of chatbot messages and recommendations. Insights on how user trust is related to credibility provide a useful perspective on the conceptualization of algorithmic credibility. Algorithmic information processing that has been identified provides better foundations for algorithm design and development and a stronger basis for the design of sense-making chatbot journalism.