The development of large language models (LLMs) is limited by a lack of explainability, the absence of a unifying theory, and prohibitive operational costs. We propose a neuro-theoretical framework for the emergence of intelligence in systems that is both functionally robust and biologically plausible. The model provides theoretical insights into cognitive processes such as decision-making and problem solving, and a computationally efficient approach for the creation of explainable and generalizable artificial intelligence.