How Should World Models Be Evaluated for Embodied Decision-Making? A Decision-Making-Centric Position

Abstract

World models have become a central abstraction in modern AI. The term now refers to several different objects: action-conditioned environment models, latent imagination models, future-video predictors, interactive neural simulators, latent predictive representations, and synthetic-data engines. Evaluation has broadened along with the term. Recent papers measure video realism, perceptual similarity, instruction following, physical plausibility, policy ranking, executability, planning success, and downstream policy improvement. This produces both metric diversity and a recurring problem of claim/evidence mismatch: papers sometimes make a stronger claim about what their model is useful for than their evaluation can establish. This paper surveys the recent literature and argues that, for models presented as world models for embodied decision-making, the more decisive issue is not whether the model generates visually convincing videos, but whether it supports reliable interventional reasoning, policy evaluation, planning, and policy optimization under intervention, policy-induced distribution shift, and long-horizon rollout. We organize the survey using an L0--L7 ladder spanning visual plausibility to policy optimization utility, noting that the levels cut across several orthogonal axes and so form an evidential hierarchy rather than a single scalar. The framework foregrounds interventional action fidelity, closed-loop rollout validity, reward/value prediction, policy-ranking agreement, optimization lift, model exploitability, and uncertainty calibration, with a minimal feasible reporting set for real-robot settings.