Dreaming when Necessary: Advancing World Action Models with Adaptive Multi-Modal Reasoning

World Action Models (WAMs) offer a promising approach to embodied intelligence, yet existing methods rely heavily on video prediction as action priors and lack adaptive multimodal reasoning, limiting their effectiveness on long-horizon, complex tasks. We observe that WAMs require different multimodal reasoning modes under different execution contexts: textual reasoning is essential during task transitions to guide high-level action prediction, while visual reasoning is critical during fine-grained manipulation for precise control. Motivated by this observation, we propose \textbf{AdaWAM}, a world action model with adaptive multimodal reasoning abilities. AdaWAM integrates a lightweight dynamic router that autonomously triggers textual or visual reasoning as needed during task execution. Experiments on both simulated and real-world embodied tasks show that AdaWAM substantially improves inference efficiency while outperforming state-of-the-art embodied policies. Codes and demos are available at: https://adawam.github.io/.

WorldArena: A Unified Benchmark for Evaluating Perception and Functional Utility of Embodied World Models

While world models have emerged as a cornerstone of embodied intelligence by enabling agents to reason about environmental dynamics through action-conditioned prediction, their evaluation remains fragmented. Current evaluation of embodied world models has largely focused on perceptual fidelity (e.g., video generation quality), overlooking the functional utility of these models in downstream decision-making tasks. In this work, we introduce WorldArena, a unified benchmark designed to systematically evaluate embodied world models across both perceptual and functional dimensions. WorldArena assesses models through three dimensions: video perception quality, measured with 16 metrics across six sub-dimensions; embodied task functionality, which evaluates world models as data engines, policy evaluators, and action planners integrating with subjective human evaluation. Furthermore, we propose EWMScore, a holistic metric integrating multi-dimensional performance into a single interpretable index. Through extensive experiments on 14 representative models, we reveal a significant perception-functionality gap, showing that high visual quality does not necessarily translate into strong embodied task capability. WorldArena benchmark with the public leaderboard is released at https://worldarena.ai, providing a framework for tracking progress toward truly functional world models in embodied AI.