When Text is not enough. What is a World Model?

When Text is not enough. What is a World Model?

What Are World Models?

World models are a new kind of AI architecture designed to simulate and predict how the real world behaves — not just interpret language.

Unlike large language models (LLMs), which predict the next token based on text patterns, world models learn internal representations of the environment itself: They model physical properties, causality, spatial relations, and temporal dynamics.

In simple terms:

  • LLMs are trained on language (words, sentences, stories).
  • World models are trained on reality (physics, movement, forces, events).

This makes them critical for applications where understanding the physical world is essential, such as robotics, autonomous vehicles, industrial automation, and game environments.


How World Models Work

During training, a world model observes sequences of events and learns to predict future states of an environment based on current inputs.

For example: If a robot moves an object, the model learns the expected trajectory, friction effects, and changes in position — without needing a manual physics engine.

Internally, it builds a latent representation of objects and their interactions, allowing it to imagine hypothetical futures ("what would happen if...?") and plan actions accordingly.

Some world models also use generative techniques: instead of outputting just numbers, they can generate realistic future images, video frames, or sensor readings.


Why World Models Are Needed

LLMs, even multimodal ones, have inherent limitations when it comes to simulating real-world physics. Language captures abstractions and experiences, but it does not encode causality or physical laws.

Simply put: Gravity existed long before we invented the word “gravity.” Simulating a falling apple requires physics, not just vocabulary.

For robotics, smart agents, or any system operating in the physical world, we need models that understand forces, constraints, and dynamics — not just words.

World models bring this capability.


Real-World Use Cases

  • Robotics: Predict how a robotic hand must move to grasp different objects.
  • Autonomous Vehicles: Simulate traffic scenarios before making driving decisions.
  • Industrial Automation: Model the flow of materials or assembly processes.
  • Virtual Worlds: Create realistic game or training environments without manual physics programming.


How World Models Are Trained

Typically, they are trained using:

  • Simulation environments (like MuJoCo, DeepMind Lab, CARLA) providing ground-truth physical interactions.
  • Sensor-rich datasets (camera images, LiDAR scans, accelerometers) from real-world activities.
  • Self-supervised learning: models predict the next observation without explicit human labels.

The goal is to internalize the rules of the environment from observation and interaction, not from language description.


Key Takeaways for CTOs

  • LLMs aren’t enough: Physical simulation and autonomous action require a different model family.
  • World models are foundational for robotics, manufacturing, mobility, and AR/VR agents.
  • Data is key: Building good world models needs rich, high-fidelity sensory and simulation data.
  • Hybrid systems are coming: The future will blend LLMs (for reasoning) and world models (for action) into seamless agent architectures.


🚀 World models are the bridge between intelligence and physical reality.

They enable AI not just to "talk about the world" — but to think, predict, and act within it.

Kristoffer Ruohonen

Business Analyst, Agile Coach and AI enthusiast

3mo

For one project I wanted to generate an image of a old locomotive that switches rail after passing some sign. I probably tried to iterate 10times with various prompts, but every time it would either have rail turns by the switch that turned 90° to the side (not very train friendly) or it would suddenly have 3 rails or double rails everywhere. First time I noticed how dumb LLMs are without nore context or data.. 😃

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Christian Moser

AI + Humans = 🚀 | Executive Consultant for Insurance & FinTech | Keynote Speaker | Author | Chief of Digital Experience & Partner at Zühlke

3mo

Mario –`,'- Schmuziger World models become relevant for physical simulation and robotics

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