Information as Maximum-Caliber Deviation: A bridge between Integrated Information Theory and the Free Energy Principle

We propose a mathematical theory of pragmatic information that connects communication, control, and decision-making. Its central notion is the isoteleia mapping, which formalizes equifinality: distinct semantic paths that lead to the same optimal action are treated as pragmatically equivalent. This mapping yields a three-tier hierarchy of syntactic, semantic, and pragmatic information, in which each successive abstraction removes distinctions that are irrelevant to the task. We then define pragmatic entropy, up/down pragmatic mutual information, channel capacity, and rate-distortion, and prove lossless source coding, channel coding, and rate-distortion theorems that extend Shannon's results. These measures quantify decision uncertainty, reliable transmission, and task-oriented compression at the level of terminal actions. We further introduce pragmatic value of information (VoI) and pragmatic cost of information (CoI) as decision-theoretic duals to rate-distortion and capacity, and develop a Lagrangian dual framework for cross-layer optimization. The resulting pragmatic efficiency bound $\mathcal{E}_p(λ)=\sup_R[Φ_p(R)-λ\mathrm{CoI}_p(R)]$ characterizes the maximum net utility attainable by a resource-constrained intelligent system under a given resource price, yielding a behavioral capacity that extends Shannon's symbol-level capacity to goal-directed action. Extensions to continuous messages provide closed-form expressions for Gaussian channels and sources, while dynamic settings are addressed through a Bellman equation for sequential decision-making. The framework supports task-oriented communication, networked control, autonomous systems, and embodied AI by shifting emphasis from symbol fidelity to the effectiveness of information in guiding actions. In this way, it offers a common language for systems that extract value from information under resource constraints.

The last decade has seen the development of powerful methods for learning complex structure from high-dimensional data. These advances have brought to the foreground fundamental connections between subdisciplines of physics, applied mathematics, and machine learning. In this review, we bring together some of these ideas, often expressed in different languages, to highlight a conceptual thread that links five distinct fields: control theory, optimal transport, probabilistic inference, non-equilibrium thermodynamics, and machine learning. A common theme is the optimization of free-energy-like functionals under dynamical or statistical constraints. We offer a guided tour through this thread and present selected applications in reinforcement learning, variational inference, and generative modeling. The review does not assume prior familiarity with these topics, and begins with principles originating from physics.

Under the free energy principle, a predictive system does not observe reality directly; it maintains a generative model of the world and experiences that model's best current hypothesis. Can a synthetic environment be made consistent enough that a predictive system's own inference machinery adopts it as this default hypothesis, permanently displacing the environment that first shaped it? We call this state ontological inversion. Because inducing and monitoring such a transition in a nervous system is neither ethical nor technically feasible, we study the underlying computational problem through a controlled proxy: a convolutional variational autoencoder paired with a recurrent latent predictor, whose evidence lower bound objective is mathematically identical, up to sign, to variational free energy itself. The network is trained first on a baseline visual domain, then on a mixed stream in which a swept rehearsal ratio r controls how much baseline content persists during transition to a target domain. Representational capacity, what the latent space can discriminate, is tracked separately from default behavior, what the system generates when left unconstrained. Across a full sweep of 90 runs, the two diverge sharply: representational accuracy stays near ceiling, 0.97 to 0.998, regardless of r, while default behavior spans nearly the system's entire range depending on r alone, a decoupling of learning from acceptance. More strikingly, at intermediate r the system's default output rises toward the target domain, then partially reverts toward the baseline while training continues unchanged, a structural failure we term cognitive relapse. Resistance to reality-adoption is not reducible to learning speed; it is a structural property with its own distinct failure modes, established here as a computational existence proof and nothing further.