A latent dynamics model is a learned function that predicts the evolution of an environment's state within a compressed, abstract latent space, rather than in the raw, high-dimensional observation space (e.g., pixels). It maps a current latent state and action to a predicted next latent state and often a predicted reward. This compressed representation enables more efficient planning and policy training by simulating future trajectories through imagined rollouts in a computationally manageable space.
