AI in 2026: From World Models to Small Language Models Shaping the Future

As 2026 dawns, the landscape of artificial intelligence (AI) is set to transform with the rise of world models and small language models, offering new possibilities and addressing the growing concerns over AI safety, regulation, and the sustainability of the current AI boom.

World Models: A New Era in AI

Despite the term 'AI slop'—low-quality content produced in large quantities by AI—gaining traction, tech companies continue to innovate. Google's Gemini 3 model and OpenAI's GPT-5 are pushing the boundaries, but the future may lie in world models. These models learn from videos, simulations, and other spatial inputs to predict how things move over time, creating a more intuitive and realistic AI experience.

Yann LeCun, one of the godfathers of AI, leaves Meta to launch his own world model start-up, signaling a significant shift in the industry. Companies like Google and Meta are already developing their versions for robotics and video games, while Chinese tech giants like Tencent are also entering the fray.

Small Language Models Gain Traction in Europe

In Europe, the trend is moving towards smaller, more efficient language models. These lightweight versions of large language models (LLMs) are designed to operate on smartphones and low-powered computers, using fewer parameters and less energy. Despite their size, they retain strong capabilities for text generation, summarization, question-answering, and translation.

European tech companies are embracing these small language models, which could lead to more sustainable and accessible AI solutions. This shift is particularly appealing as it addresses the limitations of LLMs and the growing need for more efficient and less resource-intensive AI systems.

Industry Context and Implications

The rise of world models and small language models reflects a broader industry trend towards more practical and sustainable AI. As the AI bubble continues to be a topic of debate, these new models offer a fresh perspective and potential for innovation.

Robert Playter, CEO of Boston Dynamics, highlights the importance of AI in advancing robotics: 'There's still a huge amount of work to be done, but none of this could have been possible without AI. And so it's really an exciting time.'

As 2026 progresses, the focus on world models and small language models is likely to shape the future of AI, making it more versatile, efficient, and aligned with real-world needs.

References

• From 'AI slop' to world models, bubbles and small models: What to expect from AI in 2026 | Euronews