Do World Models Learn Global Understanding?

Abstract

AI systems often feel brittle and fragmented. A large language model (LLM) may correctly explain a concept but fail to apply it, or follow safety instructions in one context but not another. This behavior suggests a general failure to lift local information to a global understanding. To gain fundamental insight, we frame "understanding" as learning constraints and propagating their consequences. We construct learning tasks on monoid worlds, sets of states connected by action transitions, where observed training transitions and an unseen constraint jointly determine held-out transitions. Measuring generalization tests whether models can learn global constraints from local transitions and propagate their consequences. We consider inverse, commutativity, composition, and periodicity constraints relevant to spatial and semantic structure. Across attention, recurrent, and state-space architectures, next-state training fits the data but fails to propagate non-trivial constraints. Compositional training, which uses identical paths but hides intermediate states from the input, achieves 96% accuracy on inverse, commutativity, and composition constraints across architectures, yields corresponding improvements in geometric generalization of world models trained on embodied environments and relational generalization in Wikidata-finetuned LLMs. How far do models propagate constraints when inferring an unseen fact may depend on first inferring others? We define proof depth d of a held-out transition, measuring the minimum number of inference rounds to infer the transition, and find that model generalization decreases sharply with proof depth. Increasing compositional path length T improves generalization. These results provide a formal way to investigate global understanding in language and world models and demonstrate that compositional training promotes information propagation and integration.