Calibration and Risk-Budgeted Decisions with System One Models

Large language models (LLMs) often make discrete decisions, such as flagging phishing or escalating to a human. System-1 models, such as Jev and the OpenAI Decisions API, return probabilities over options in a single forward pass, while System-2 approaches generate reasoning steps. Which decisions can System-1 models handle, and which require generative reasoning? We introduce System1-Arena, a benchmark that gives all models the same decision requests and scores their probabilities. It contains 92k questions across 105 tasks from 268 public sources, in four groups: text classification and knowledge, applied decisions, evaluation and control, and agent and action. It also includes 138 closed-loop environments, from web shopping and SWE-bench coding control to robotics, games, and driving; in real-time mode, the world evolves while a model decides. We evaluate 30 models: 7 closed LLMs, 13 open LLMs read at the answer token, and 10 System-1 models. The largest System-1 models match or exceed fast closed LLMs in non-agentic accuracy, with better-calibrated probabilities at one-quarter of the latency. A reasoning LLM is the most accurate, at about 70x the cost of a fast LLM. In closed loops, large open LLMs succeed most often (up to 32.9%); small System-1 models rarely succeed.

Multi-agent deliberation among LLMs can improve reasoning, but deployment requires deciding when the current answer is reliable enough to act on and when it should be escalated to human review. We formulate this as budgeted act-or-defer decision making. At each round, the system maps the debate prefix to a low-dimensional state, computes a $k$-nearest-neighbor lower confidence bound on state-conditional correctness using calibration data, and acts only when the bound exceeds a user-specified reliability threshold. The certificate controls wrong actions through the decomposition $β= δ+ α+ \varepsilon_{\mathrm{act}}$, separating calibration failure, residual action risk, and representation gap. The guarantee is conditional, not distribution-free: it relies on a valid local bias envelope and an action-region representation-gap bound, and each assumption is paired with falsification-style diagnostics. Because the same absolute wrong-action budget has different meanings across tasks of different difficulty, we set budgets relative to each task's final-round error using training data only, and evaluate safety by normalized budget usage $\mathrm{WA}/β$. On six benchmarks against nine baselines, the method uses 9--12% of the pre-declared budget on activated datasets, reaching up to 84% automation and 96% acted-on accuracy; on stress-test datasets, it defers rather than forcing unreliable automation. Rather than relying on per-task post-hoc threshold search, the method prospectively converts a user-declared wrong-action budget into an auditable act-or-defer operating point before deployment, under explicitly stated assumptions.

LLM-based decision-making systems, also called System One models, have recently gained popularity, most notably through Jev (Almeida, 2026). Given a typed input state, a question, and a set of options, they return a probability for each option in a single forward pass, without text generation. We show that existing open instruction-tuned language models can achieve comparable performance without any additional training, by reading out answers from letters (A, B, C, etc.) in the model's output logits at the last token position. Furthermore, we show how a simple supervised fine-tuning recipe can improve their performance further. We evaluate four open instruction-tuned language models: Gemma 4 31B, Gemma 4 12B, Qwen3.6-27B, and Qwen3.5-4B. We fine-tune each using LoRA and a decision head initialized from a slice of the language model head. Furthermore, we introduce OpenDecisions, a novel 2,352-question validation dataset designed to reflect the task composition of JevBench (JevBench main- tainers, 2026) and which computes a Capability score based on accuracy and calibration metrics. Without fine-tuning, Gemma 4 31B scores 79.6 on OpenDecisions, compared to Jev's 80.1. After undergoing our fine-tuning recipe, it scores 84.4 on OpenDecisions and 81.5 on JevBench v1.7, outperforming Jev by 4.3 and 4.4 Capability points respectively and setting a new state-of-the-art on OpenDecisions. On a suite of public decision datasets, our models achieve accuracy comparable to Jev, with lower calibration error. Our results show that open language models already possess System One capabilities, and with simple fine-tuning they outperform Jev on a wide range of decision tasks. We release our models, serving code, and OpenDecisions.