ALE is technology for SAP mainly use to transfer data between SAP systems.

EDI is the independent technology use to transfer data between two systems, they can be SAP systems or non SAP systems.

The basic difference with ALE and EDI is ALE used for internal communications and EDI is meant for external communications. Since ALE uses an IDOC format to exchange data between systems, both participating systems should understand the IDOC format. In other words ALE normally used to distribute the master data (Ex: Material Master, Vendor Master) with in a company when you are maintain the distributed environment. For example data transfer between a SAP R/3 and SAP APO where the data transfer is implemented using ALE technology. EDI is for exchanging transaction data (Purchase order, Delivery) between two different business partners.EDI is all about the standards (Ex: ANSI X12, EDIFACT) you have to follow when you are transferring business documents.

Technically speaking, ALE transfers the data using memory buffers whereas EDI uses file port to transfer the data. With EDI technology you always need a translator to convert the IDOC to X12 (Outbound), X12 to IDOC (Inbound).But with ALE you dont need a translator.