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This research exposes a critical flaw in Joint-Embedding Predictive World Models (JEPWMs), demonstrating that low prediction error does not guarantee the model can distinguish action consequences. By isolating bottlenecks between simulator states and raster observations, the study reveals that representation geometry and action-path under-use often obscure physical state identifiability despite high latent accuracy. These findings provide a rigorous protocol for auditing world models before deploying them in safety-critical physical environments.
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Counterfactual Action Evaluation, Observation Bottlenecks, and Representation Geometry in Joint-Embedding Predictive World Models

arXiv2 min read

arXiv:2610.02860v1 Announce Type: new Abstract: Low latent prediction error does not establish that a world model distinguishes the consequences of its actions. We introduce an evaluation protocol that traces the same intervention through simulator state, raster observations, target embeddings, and predictor outputs. Exact simulator-state forks in a controlled deformable-physics testbed reveal distinct bottlenecks. Changed commands alter particle motion, yet 41.5% of one-step raster pairs are identical. Observation loss is not the whole explanation: among 579 high-visibility counterfactuals, median predictor-to-target response is 0.0051 and 0.0217 across two seeds, falling to 0.0027 and 0.0116 after variance normalization. An isotropic state perturbation matched to the target counterfactual embedding shift produces 190x and 53x larger predictor changes on the same visible pairs, isolating action-path under-use rather than a dead or globally shrunk predictor. MSE-only training gives 8.36x lower 10-step latent error in matched seeds, but in spectrally concentrated spaces; one VICReg target encoder is also strongly concentrated, so neither error nor rank alone certifies physical state. Finally, stiffness remains near chance even from full-resolution rasters and mechanical state while privileged material parameters decode perfectly, indicating weak identifiability under this excitation rather than encoder discard. These results motivate auditing physical effect, observation visibility, representation geometry, and action dependence separately.

Abstract:Low latent prediction error does not establish that a world model distinguishes the consequences of its actions. We introduce an evaluation protocol that traces the same intervention through simulator state, raster observations, target embeddings, and predictor outputs. Exact simulator-state forks in a controlled deformable-physics testbed reveal distinct bottlenecks. Changed commands alter particle motion, yet 41.5% of one-step raster pairs are identical. Observation loss is not the whole explanation: among 579 high-visibility counterfactuals, median predictor-to-target response is 0.0051 and 0.0217 across two seeds, falling to 0.0027 and 0.0116 after variance normalization. An isotropic state perturbation matched to the target counterfactual embedding shift produces 190x and 53x larger predictor changes on the same visible pairs, isolating action-path under-use rather than a dead or globally shrunk predictor. MSE-only training gives 8.36x lower 10-step latent error in matched seeds, but in spectrally concentrated spaces; one VICReg target encoder is also strongly concentrated, so neither error nor rank alone certifies physical state. Finally, stiffness remains near chance even from full-resolution rasters and mechanical state while privileged material parameters decode perfectly, indicating weak identifiability under this excitation rather than encoder discard. These results motivate auditing physical effect, observation visibility, representation geometry, and action dependence separately.

15 pages, 7 figures. Published in the 40th Conference on Neural Information Processing Systems (NeurIPS 2026), Workshop on Physical World AI: Geometry, Characteristics, and Multimodal Sensing. Replication Package: this https URL

Machine Learning (cs.LG)

arXiv:2610.02860 [cs.LG]

(or arXiv:2610.02860v1 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2610.02860 arXiv-issued DOI via DataCite (pending registration)

Full text under the publisher's open licence · 248 words

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