A vs. I in AI: Is there a Threshold to “Engineered” Intelligence?

Despite artificial intelligence reshaping the world, its development generates uncertainties regarding future capabilities. AI simultaneously exists as an artifact of engineering design and as autonomous intelligence, creating an observer-participant feedback loop. This paper proposes that embodied AI faces a bandwidth-limited intelligence threshold T_h that it arises from B = min(C_sens,C_Act). However, Shannon capacity measures bits while intelligence operates on concepts, necessitating a dual-channel model separating physical bandwidth B_io from representational capacity B_rep. Intelligence emerges as multi-dimensional rather than scalar, with components exhibiting different bandwidth dependencies. Surpassing T_h requires either new sensing methods expanding B, enhanced representational frameworks, or reconceptualization within higher cardinality ontologies.