Does Scaling Toward AGI Depend on What System-1 Lets System-2 Execute?

arXiv:2610.39497v1 Announce Type: new Abstract: Progress toward artificial general intelligence (AGI) has largely relied on scaling a resource-intensive executive, System-2, through larger models, more data and compute, longer reasoning, and more agents. We ask whether the next stage may come instead from co-designing it with System-1, a lightweight, semantically aware predictor that evaluates candidate interactions before execution, so that System-2 acts only on those worth their cost. Our answer is a qualified yes. We study \textit{conditional interaction}, a predict--gate--execute--update loop: System-1 estimates each candidate's utility, System-2 executes those admitted by an adaptive threshold, and the outcomes update System-1. The loop spans training, test-time reasoning, adaptive decision-making, and agentic tool use, with utility and cost defined by the application. Under ideal screening and equal execution costs, execution compute falls by a factor approaching $1/\rho_u$, where $\rho_u$ is the density of utility-relevant interactions (cost-weighted when costs differ); prediction errors, exploration, and distribution shift reduce the saving. We bound selection regret by pre