A world model is an internal, learned representation within an AI system that captures the essential dynamics and regularities of its environment, allowing the agent to simulate and predict future states without direct interaction. It acts as a compressed, causal simulator, enabling planning, counterfactual reasoning, and robust decision-making under uncertainty. This concept is central to model-based reinforcement learning and is formalized by frameworks like the Partially Observable Markov Decision Process (POMDP).
