arXiv AI By Jiaheng Chen, Tinghe Zhang, Yucheng Xiao, Xinyong Cai, Lan Yu, Juncheng Bu, Jiaxing Li, Yunlong Wang

ATM: Why Latent World Models Can Fail to Plan

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The paper investigates why latent world models, despite accurate latent predictions, can perform poorly in downstream planning. It introduces the concept of action-identifiability and formalizes it via Bayes inverse risk, showing that self-decodable predicted transitions may encode domain‑specific action relationships that do not transfer to real environments. Using the Action‑Consistency Transfer Matrix (ATM), the authors demonstrate that true‑transition action‑identifiability correlates strongly with planning success across several benchmarks, and that the ATM can diagnose cross‑domain inconsistencies and aid lightweight model screening.

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