World Models (WM) are increasingly seen as a foundation for intelligent agents that can predict, plan, and act beyond their training distribution. In this paper, we study WMs from a causal perspective across multiple levels of abstraction, ranging from perceptual observations to building a conceptual representation of the structure governing the environment dynamics. We argue that useful WMs must go beyond generative capabilities alone: they should also capture entity properties, entity-to-entity interactions, and entity-to-environment interactions that determine and explain the dynamics of a system. We provide a formal definition of Causal WMs (CWMs) grounded in the tasks they are intended to support, connecting world modelling with existing work in causal representation learning, object-centric learning, causal discovery, structural causal models, and model-based decision-making. Finally, we relate CWMs to the literature on identifiability, clarifying when the components of a WM can be recovered from data and up to which equivalence. With this, we ground WMs in representations and structures that support causal reasoning and informed decision-making.
Embodied world models learn to predict future physical dynamics from visual observations and control signals, where physical knowledge is implicitly entangled within latent representations. We introduce CausalWM, a 16B embodied world model that performs explicit causal chain-of-thought reasoning before future video prediction. CausalWM organizes useful variables into a reasoning trajectory, allowing the model to progressively capture causal dependencies underlying physical evolution. To train CausalWM, we collect 31K hours embodied data and develop a three-stage paradigm consisting of large-scale video pre-training, causal CoT mid-training, and multi-objective RL post-training. Despite using only a limited set of supervised CoT variables, CausalWM exhibits emergent in-context learning capabilities, enabling contextual visual feature guidance and efficient few-step generation. CausalWM achieves state-of-the-art performance across language-conditioned, action-conditioned, single-view and multi-view benchmarks, including Top-1 performance on TriWorldBench leaderboard.
In model-based reinforcement learning, world models exist as internal simulators, but their training often conflates statistical correlations with causal mechanisms. This problem is exacerbated in multi-agent systems where physical transitions are intertwined with strategic agent intents, causing world models to fail under distribution shift. We introduce Implicit Causal World Models to recover environmental dynamics from offline demonstrations without requiring pre-defined causal graphs. By incorporating policy variance, we render world models discoverable via the sequential backdoor condition. Evaluations across coordination tasks (Two-Door, Navigation, and Giveway) demonstrate that these models provide interpretable causal representations under both full and partial observability, with model accuracy scaling directly with interventional strength.
World Action Models (WAMs) have emerged as a promising paradigm for generalizable robot control. Despite the growing number of WAM systems, existing works often introduce unified systems that bundle together multiple design choices, such as architecture and training strategy, making it difficult to isolate individual contributions and systematically compare alternative designs. In this work, we present a controlled study that disentangles these design choices and analyzes not only their empirical effects, but also how and why they shape WAMs. More specifically, we focus on three fundamental questions in building WAMs: (1) what causal structure should govern the interaction between world modeling and action generation? (2) in which latent space should world modeling be performed? and (3) how do different world-action modeling objectives affect model behavior and performance? Through structurally controlled experiments on three representative benchmarks, RoboCasa-GR1, LIBERO, and LIBERO-Plus, we systematically compare six causal structures, eight latent representations, and four training objectives, covering popular design choices in existing WAMs. We further validate our key findings on real-robot data from the DROID dataset. We hope to provide a systematic understanding of how core design choices affect world-action modeling and what principles can guide the development of future WAM systems.