World Models Make Surprising Progress Towards AGI, DeepMind CEO Says

World models are enabling AI to simulate and understand our complex reality, accelerating the path to human-like general intelligence.

May 25, 2025

The development of artificial intelligence capable of simulating and understanding the real world, known as world models, is showing surprising progress towards the long-sought goal of Artificial General Intelligence (AGI), according to Demis Hassabis, CEO of Google DeepMind.[1] Hassabis, a leading figure in the AI research community, suggests that these sophisticated AI systems are moving beyond narrow tasks and are beginning to grasp the complexities of our environment, a crucial step for creating AI with human-like cognitive abilities. This advancement has significant implications for the future of AI, potentially accelerating the arrival of AGI and transforming various industries.[2][3]
World models are AI systems designed to build an internal representation of how the world works, allowing them to simulate environments, predict future states, and understand the consequences of actions.[4][5][6] Unlike traditional AI, which often excels at specific, narrowly defined tasks, world models aim for a more holistic understanding, integrating multiple data types like images, text, and sensory inputs to create dynamic and interactive simulations.[4][5] This capability is considered by many researchers, including Hassabis and other leaders like Yann LeCun, as a key component for developing AI systems that can reason, plan, and adapt in complex and ever-changing scenarios, much like humans do.[4][6][7] The ability of these models to learn and adapt from interactions within these simulated environments is seen as a pathway to more robust and generalizable intelligence.[5] Companies like Google DeepMind, OpenAI, and Meta are heavily investing in this area, recognizing its potential to bridge the gap between current AI capabilities and the more comprehensive understanding required for AGI.[4]
Google DeepMind has been at the forefront of this research, with projects like Genie 2 demonstrating the potential of world models.[8][9][10][11] Genie 2 can take a single image and generate an interactive, playable 3D world from it, allowing an AI agent (or a human) to explore and interact within this newly created environment.[8][9][10] Hassabis highlighted that the AI is essentially "imagining" and creating the world on the fly.[9][10] This goes beyond mere entertainment; the larger ambition is to build AI that truly understands the structure and dynamics of our world.[9][12] Such models could generate a limitless variety of simulated environments, providing rich training grounds for AI agents to learn new skills that could then be transferred to real-world applications, such as robotics.[9][10][11] DeepMind is also working on extending its multimodal foundation model, Gemini, to become a world model capable of planning and simulating aspects of the world, similar to how the human brain functions.[12] Another significant project is SIMA (Scalable Instructable Multiworld Agent), a generalist AI agent designed to understand and follow natural-language instructions across a variety of 3D virtual environments, including video games.[13][14][15][16][17] SIMA doesn't require access to game source code, relying only on on-screen images and instructions, which mimics human interaction and allows it to potentially interact with any virtual environment.[13] These developments indicate a shift from AI excelling in single, complex games to agents that can operate across multiple simulated worlds, learning how language ties into gameplay behavior.[13][16]
The pursuit of AGI – AI with the full range of human cognitive abilities – is a central goal for many leading AI labs.[18][19][3][20] Hassabis has suggested that AGI could emerge within the next five to ten years, a timeline that, while ambitious, is more measured than some predictions.[21][19][22][23] He emphasizes that current AI systems, while impressive, still lack crucial attributes like robust reasoning, hierarchical planning, long-term memory, and true creativity – the ability to form new hypotheses or conjectures.[18][21][3] World models are seen as a critical ingredient in developing these missing capabilities.[18][3] By understanding spatiotemporal dynamics and the physics of the world, these models can provide a foundation for more advanced planning and reasoning.[18][3][24] However, the path to AGI is not solely about scaling current models; Hassabis and others believe it will likely require further breakthroughs, combining scaling with innovations in planning, memory, and reasoning.[18][25][24][23] There's an ongoing debate within the AI community about whether scaling current architectures like transformers will be sufficient, or if entirely new approaches are needed.[26][27] Some researchers argue that embodiment – the ability for an AI to interact with the physical or a richly simulated world – is crucial for developing and convincingly demonstrating AGI.[28]
The progress in world models and the potential acceleration towards AGI carry profound implications for the AI industry and society at large. The ability to simulate complex environments cost-effectively can revolutionize training for robots and autonomous systems, reducing the need for extensive real-world data collection and interaction.[9][11] This could lead to more capable robots for manufacturing, logistics, and even household assistance.[10][21] Beyond robotics, these models have applications in gaming, entertainment, scientific research, healthcare, and addressing global challenges like climate change and disease.[9][29][21][30][22][31][32] Hassabis envisions AI as a tool to significantly speed up drug discovery, potentially reducing development times from years to months or weeks.[21] However, the development of increasingly powerful AI also brings challenges and ethical considerations.[4] Concerns include the potential for job displacement, the risk of biases embedded in models leading to flawed or harmful decisions, the responsible handling of vast amounts of data, and ensuring the safety and controllability of highly autonomous systems.[4][31][33][34][35] There are also discussions around the "AI divide," where the benefits of these advanced technologies might not be equitably distributed globally.[36] As AI systems become more capable of understanding and interacting with the world, questions of accountability, transparency, and ethical guidelines become increasingly critical.[37][34][38][39]
In conclusion, Demis Hassabis's assertion that world models are making surprising headway towards AGI signals a potentially pivotal moment in AI development.[1] These systems, which aim to simulate and comprehend the structure of the real world, are foundational to creating more generally intelligent AI.[4][12][5][3] While significant research challenges remain in achieving true AGI with human-like cognitive capabilities across all domains, the advancements in world models by Google DeepMind and others in the field suggest an accelerating pace of innovation.[18][19][25][3] The implications are far-reaching, promising transformative benefits across numerous sectors but also necessitating careful consideration of the ethical, societal, and economic impacts.[29][21][31][33][36][35] The ongoing development of these sophisticated AI systems underscores the AI industry's ambitious drive towards creating machines that can understand and interact with the world in increasingly intelligent ways.

Research Queries Used
Demis Hassabis world models AGI progress
Google DeepMind CEO Demis Hassabis on AGI and world models
Google DeepMind's recent advancements in world model AI
What are AI world models and their role in AGI?
Demis Hassabis interview on future of AI and world models
Google DeepMind Genie world model
Benefits and risks of advanced AI world models
Current state of AGI research and world models
Expert opinions on world models and path to AGI
Google DeepMind SimA (Scalable Instructable Multiworld Agent)
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