Abstract
Physical AI aims to develop models that can perceive and predict real-world dynamics; yet, the extent to which current multi-modal large language models and video generative models support these abilities is insufficiently understood. We introduce Physical AI Bench (PAI-Bench), a unified and comprehensive benchmark that evaluates perception and prediction capabilities across video generation, conditional video generation, and video understanding, comprising 2,808 real-world cases with task-aligned metrics designed to capture physical plausibility and domain-specific reasoning. Our study provides a systematic assessment of recent models and shows that video generative models, despite strong visual fidelity, often struggle to maintain physically coherent dynamics, while multi-modal large language models exhibit limited performance in forecasting and causal interpretation. These observations suggest that current systems are still at an early stage in handling the perceptual and predictive