As part of the World Economic Forum’s Top 10 Emerging Technologies 2026 series, this session explores the rise of world models — AI systems designed to build internal representations of physical, social and digital environments. By learning how the world works, rather than simply recognizing patterns in data, world models could enable AI to simulate complex systems, anticipate consequences and support better decision-making across domains such as robotics, climate modelling, infrastructure, energy, industrial planning and scientific discovery. The discussion will examine why world models are emerging as a critical frontier in AI, what makes them different from today’s large language models, and how they could reshape the way leaders test scenarios, manage uncertainty and navigate increasingly complex systems. It will also consider the technical, ethical and governance challenges involved in developing AI systems that can model reality — and the implications for business, government and society.