Goldman Sachs researchers explain why current AI systems lack a fundamental 'world model' and how solving this gap could reshape the entire AI industry.

Stanford's QuantiPhy benchmark demonstrates that current AI models struggle with basic physics reasoning, unable to accurately estimate speed, distance, and object sizes—a major roadblock for autonomous systems and robotics development.

Investment banker argues AI lacks human judgment needed for complex business decisions involving ambiguity, trade-offs, and contextual understanding beyond pattern recognition.