The next frontier of AI: how ‘world models’ are simulating reality and virtual spaces

The AI industry is shifting towards world models, systems designed to simulate how the physical and digital worlds change over time. Initially associated with physics simulations and robotics, an increasing number of Chinese companies are applying this concept more broadly. This technology is still in its infancy, with little consensus on what a world model should ultimately entail. Experts indicate that the current understanding is insufficient for developing effective models that can accurately predict changes.