Toward a Physical Theory of Intelligence

While often treated as abstract algorithmic properties, intelligence and computation are ultimately physical processes constrained by conservation laws. We introduce the Conservation-Congruent Encoding (CCE) framework as a unified, substrate-neutral physical framework for studying intelligence. We propose that information processing emerges when open systems undergo irreversible transitions, carving out macroscopic states from underlying reversible micro-dynamics. Generalizing Landauer's principle to arbitrary conserved quantities via metriplectic flows, we derive a universal bound for macroscopic computation. This yields physical metrics for intelligence and an operational analogue for consciousness, quantifying an agent's ability to extract work from the environment while minimizing its own dissipative dynamics. Applying CCE to the limits of physical observation, we model measurement as an active coarse-graining process rather than a passive projection. At the quantum scale, CCE recovers the Lindblad Master Equation, consistent with modelling decoherence as the dissipative exhaust required to record a measurement. Scaling to cosmological limits, we explore the hypothesis that gravity emerges as the macroscopic geometric footprint of these bounds. We show that, under this hypothesis, measurement-induced dissipation is consistent with a volumetric phase-space collapse, offering a dynamical route to the Bekenstein-Hawking area law. Equating the Landauer exhaust of this coarse-graining to horizon deformation outlines a limiting-case recovery of the Einstein Field Equations. Ultimately, by establishing a substrate-neutral link between thermodynamic dissipation, quantum measurement, and spacetime geometry, CCE provides physical constraints for understanding both natural and artificial intelligence.