The BST insert operation begins by creating a new node with the value to insert. Starting at the root, the algorithm compares the new value with the current node's data. If the new value is smaller, it moves to the left child; if larger or equal, it moves to the right child. This process repeats until it finds a null child pointer, where it inserts the new node. The recursive insert function returns the updated subtree root to maintain correct parent pointers. This ensures the binary search tree property is preserved, allowing efficient search operations.