Why would organizations not be responsible for decisions made by an algorithm? After all they are still the entity who decided to use that algorithm, and to execute the decision.

Sure, they say "Oops! It was an algorithm, we didn't do anything!", but is that any different than management saying "Oops! It was just a rogue employee, we didn't do anything!" For anything sufficiently consequential or systematic the second excuse doesn't work, so why should the first excuse work?