Paper 1 — Series 1: Embedding & Legal NLP

The Dimensionality Illusion

Why PCA Variance Does Not Equal Semantic Information in Text Embeddings

Joel Thorarinson, Allison Hensgen May 2026 18 pages 40 references arXiv-ready

Abstract

Recent work claims that text embeddings with nominal dimensionality of 768–4096 have effective intrinsic dimensionality of approximately 16, as measured by PCA variance explained and downstream task performance on standard benchmarks. This conclusion is an artifact of evaluation methodology, not a property of the embeddings themselves. Using domain-specific vectors spanning legal documents, conversational text, and structured records, we demonstrate that fine-grained intra-domain semantic structure degrades sharply when embeddings are reduced to 16 dimensions via PCA, even when coarse inter-domain classification is preserved. In a 62-term legal dictionary experiment, intra-domain term pairs collapse by up to Δ = +0.140 in cosine similarity, while inter-domain pairs never collapse — explaining why MTEB-style benchmarks report “no degradation.” We introduce three complementary evaluation tools: domain-conditional retrieval precision (DCRP), Semantic Coherence Loss (SCL), and Compression-Induced Semantic Aliasing (CISA). An information-theoretic argument establishes that PCA variance is a poor proxy for semantic information: dimensions with low variance can carry high mutual information with specialized query distributions. Claims of low intrinsic dimensionality confuse the geometry of embedding spaces with their information content. Compression must be evaluated against the semantic resolution required by the domain.
PDF Download 3D Embedding Explorer Dictionary Collapse Demo DCRP Results

Key Findings

Figures

Two failure modes of PCA compression: collapse and distortion
Figure 1: Two failure modes. PCA compression produces collapse (intra-domain pairs merge) and distortion (inter-domain separation amplifies). Standard benchmarks measure only the latter.
Heirship term convergence under PCA compression
Figure 2: Heirship convergence. Forced-heirship legal terms from different traditions collapse toward each other as PCA dimensionality decreases, becoming indistinguishable at 16 dimensions.
PCA variance vs mutual information with domain-specific queries
Figure 4: Variance vs. information. PCA dimensions ordered by variance (blue) vs. mutual information with domain-specific queries (orange). Low-variance dimensions carry high domain-specific information.

Citation

BibTeX
@article{thorarinson2026dimensionality,
  title={The Dimensionality Illusion: Why {PCA} Variance Does Not Equal Semantic Information in Text Embeddings},
  author={Thorarinson, Joel and Hensgen, Allison},
  year={2026},
  month={May},
  pages={1--18},
  note={arXiv preprint (forthcoming)},
  keywords={text embeddings, PCA, dimensionality reduction, DCRP, semantic coherence}
}
APA
Thorarinson, J., & Hensgen, A. (2026). The Dimensionality Illusion: Why PCA Variance Does Not Equal Semantic Information in Text Embeddings. arXiv preprint (forthcoming).

Authors

JT
Joel Thorarinson
Coherence Research Group · ORCID 0000-0002-0553-842X
AH
Allison Hensgen
Contributed SCL, CISA, and coherence threshold framework · ORCID 0009-0008-7247-0307

Keywords

text embeddings PCA dimensionality reduction semantic coherence semantic aliasing domain-specific retrieval DCRP MTEB RAG legal NLP intrinsic dimensionality

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