System1-Arena: Which Decisions Can Be Left to System 1?

arXiv:2610.21244v1 Announce Type: cross Abstract: 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.

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Source: arXiv cs.AI | 2026-10-16