Business World Model

World models, internal simulators that learn the structure and dynamics of an environment, have emerged as a central paradigm in the pursuit of artificial general intelligence, enabling agents to predict, plan, and reason within learned representations. Despite rapid progress across reinforcement learning, robotics, autonomous driving, and video generation, the field lacks a unified framework integrating its diverse architectural choices, training methods, reasoning mechanisms, and application settings. This survey addresses that gap with a multi-axis taxonomy organized along four dimensions: (i) architecture, encompassing representation format, dynamics formulation, input modality, learning paradigm, and downstream application; (ii) methodological family, including state-space and recurrent approaches, transformer-based models, diffusion-based generators, physics-informed networks, and language-augmented multimodal systems; (iii) reasoning strategy, covering imagination-based planning, latent policy learning, counterfactual reasoning, and planning under uncertainty; and (iv) application domain, spanning robotics, autonomous driving, video prediction, multimodal agents, reinforcement learning, scientific modeling, medical imaging, educational measurement, and business and finance. Tracing the field from early cognitive-science foundations to milestone systems such as PlaNet, the Dreamer family, MuZero, Sora, Cosmos, and Genie, we examine how these dimensions interact and highlight the recent convergence of chain-of-thought reasoning with world-model imagination. We review evaluation protocols and benchmarks, identify persistent challenges such as compounding prediction errors, sim-to-real transfer, and fragmented evaluation, and outline future directions toward unified multimodal world models, foundation-scale interactive simulators, and safe deployment in safety-critical domains.

Recent studies on world modeling for Large Language Model (LLM) agents typically formulate the learning objective as next-observation prediction. However, this objective ties supervision to what a transition happens to reveal, which may omit the dynamics most relevant to the agent's current decision. To bridge this gap, we propose Agent-Authored World Modeling (AAWM), a training procedure that constructs supervision from the policy's own decision needs. Specifically, at each state, the agent identifies what it needs to understand about the environment before acting. These needs drive the retrieval of relevant transition evidence across trajectories, which is then synthesized into training targets that capture decision-oriented dynamics instead of reconstructing the next observation. This aligns the training objective with the dynamics the policy needs before acting, not with the contents of the next observation. Experimental results validate the effectiveness of AAWM across multiple environments and training settings. These results show that decision-aware world-model targets provide a more effective learning signal than next-observation prediction.

As AI systems move from generating text to accomplishing goals through sustained interaction, the ability to model environment dynamics becomes a central bottleneck. Agents that manipulate objects, navigate software, coordinate with others, or design experiments require predictive environment models, yet the term world model carries different meanings across research communities. We introduce a "levels x laws" taxonomy organized along two axes. The first defines three capability levels: L1 Predictor, which learns one-step local transition operators; L2 Simulator, which composes them into multi-step, action-conditioned rollouts that respect domain laws; and L3 Evolver, which autonomously revises its own model when predictions fail against new evidence. The second identifies four governing-law regimes: physical, digital, social, and scientific. These regimes determine what constraints a world model must satisfy and where it is most likely to fail. Using this framework, we synthesize over 400 works and summarize more than 100 representative systems spanning model-based reinforcement learning, video generation, web and GUI agents, multi-agent social simulation, and AI-driven scientific discovery. We analyze methods, failure modes, and evaluation practices across level-regime pairs, propose decision-centric evaluation principles and a minimal reproducible evaluation package, and outline architectural guidance, open problems, and governance challenges. The resulting roadmap connects previously isolated communities and charts a path from passive next-step prediction toward world models that can simulate, and ultimately reshape, the environments in which agents operate. Code and resources are available at: https://github.com/matrix-agent/awesome-agentic-world-modeling.