Aggregate functions in databases process a column of data to produce a single summary value. For example, COUNT counts how many non-empty entries exist, SUM adds all numbers, AVG finds the average, MAX finds the largest value, and MIN finds the smallest. The execution flow starts by reading all rows, applying the chosen function to the column values, calculating the result, and returning a single summary value. In the example query, COUNT(age) returns 5 because there are five age entries, SUM(salary) adds all salaries to 18000, AVG(age) calculates the average age as 29, MAX(salary) finds the highest salary 5000, and MIN(age) finds the youngest age 22. These functions ignore NULL values in their calculations. This process helps quickly understand large data sets by summarizing key information.