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A Quantifiable Information-Processing Hierarchy Provides a Necessary Condition for Detecting Agency

Published: January 7, 2026 | arXiv ID: 2601.03498v1

By: Brett J. Kagan , Valentina Baccetti , Brian D. Earp and more

Potential Business Impact:

Measures how smart a system is by how it learns.

Business Areas:
Intelligent Systems Artificial Intelligence, Data and Analytics, Science and Engineering

As intelligent systems are developed across diverse substrates - from machine learning models and neuromorphic hardware to in vitro neural cultures - understanding what gives a system agency has become increasingly important. Existing definitions, however, tend to rely on top-down descriptions that are difficult to quantify. We propose a bottom-up framework grounded in a system's information-processing order: the extent to which its transformation of input evolves over time. We identify three orders of information processing. Class I systems are reactive and memoryless, mapping inputs directly to outputs. Class II systems incorporate internal states that provide memory but follow fixed transformation rules. Class III systems are adaptive; their transformation rules themselves change as a function of prior activity. While not sufficient on their own, these dynamics represent necessary informational conditions for genuine agency. This hierarchy offers a measurable, substrate-independent way to identify the informational precursors of agency. We illustrate the framework with neurophysiological and computational examples, including thermostats and receptor-like memristors, and discuss its implications for the ethical and functional evaluation of systems that may exhibit agency.

Page Count
23 pages

Category
Quantitative Biology:
Neurons and Cognition