Internal world models (WMs) enable agents to understand the world’s state and predict transitions, serving as the basis for advanced deliberative reasoning.Recent large Vision-Language Models (VLMs), such as GPT-4o and Gemini, exhibit potential as general-purpose WMs. While the latest studies have evaluated and shown limitations in specific capabilities such as visual understanding, a systematic evaluation of VLMs’ fundamental WM abilities remains absent. Drawing on comparative psychology and cognitive science, we propose a two-stage framework that assesses **perception** (visual, spatial, temporal, quantitative, and motion) and **prediction** (mechanistic simulation, transitive inference, compositional inference) to provide an atomic evaluation of VLMs as WMs. Guided by this framework, we introduce **WM-ABench**, a large-scale benchmark comprising 23 fine-grained evaluation dimensions across 6 diverse simulated environments with controlled counterfactual simulations. Through 660 experiments on 15 latest commercial and open-source VLMs, we find that these models exhibit striking limitations in basic world modeling abilities. For instance, all models perform at near-random accuracy when distinguishing motion trajectories. Additionally, they lack disentangled understanding—e.g., they tend to believe blue objects move faster than green ones. More rich results and analyses reveal significant gaps between VLMs and human-level world modeling.

Image ad understanding is a crucial task with wide real-world applications. Although highly challenging with the involvement of diverse atypical scenes, real-world entities, and reasoning over scene-texts, how to interpret image ads is relatively under-explored, especially in the era of foundational vision-language models (VLMs) featuring impressive generalizability and adaptability. In this paper, we perform the first empirical study of image ad understanding through the lens of pre-trained VLMs. We benchmark and reveal practical challenges in adapting these VLMs to image ad understanding. We propose a simple feature adaptation strategy to effectively fuse multimodal information for image ads and further empower it with knowledge of real-world entities. We hope our study draws more attention to image ad understanding which is broadly relevant to the advertising industry.