Commit or Abstain? System One Decision Models, LLMs, and Missing Legal Authority

Overview & Synopsis

Given the enormous number of claims to be checked, verifiable legal AI requires scalable, cost-effective models that answer the practical needs of law. System One decision models are built on large language models but, instead of generating text, return a calibrated probability for each option. This suits the verification of legal authority, where the question is closed: a given holding, or none of them. We test whether such models abstain when the correct authority is missing. We extend CaseHOLD with an abstention condition in which the correct holding is replaced in 1,670 of 5,314 items, and compare four decision models with six generative LLMs. When no option is correct, generative LLMs still pick one in 38-86% of items; the most cautious decision model does so in 30%. On standard CaseHOLD, a decision model matches the best generative LLM (88.1% vs. 88.2%) at 1/55 of the cost. Accepting that LLM's answer only when a decision model agrees halves its wrong citations, and distilling a decision model's probabilities into Qwen3-8B, without labels, yields a well-calibrated local model. Legal AI should be judged by its wrong citations, not by accuracy alone.