Understanding the limits of latent world models

World models are widely proposed as core components for enabling agents to reason over long temporal and spatial horizons. Yet current evaluations often emphasize task performance while providing limited insight into whether learned world models acquire predictive latent dynamics that reflect the underlying structure of the environment. Here we introduce the concept of faithful latent world models as an equivariance condition between the environment's transition map and the learned latent dynamics. We propose latent rollout consistency (LRC) as a metric to evaluate action-conditioned latent prediction. Strikingly, we find that across a range of state of the art latent world models, none solves the task by actually faithfully modeling the environment.