62. AI for the Real World with Linda Hong Cheng, Lychee Labs

World models could be the breakthrough that takes AI beyond predicting text and into understanding reality. In this episode, Linda Hong Cheng explains how these models, which learn the physical dynamics of environments, may unlock a new generation of AI capable of reasoning about complex systems. Her company, Lychee Labs, is already applying this approach to industrial manufacturing, building AI that integrates with digital twins of production lines to anticipate disruptions such as firmware changes, quality defects, or operational shocks before they cascade into costly downtime.Linda's work bridges frontier research and real-world deployment. With a background in computational social science and complex systems modelling, she is developing decision engines that combine neural networks, reinforcement learning, and world models to optimise industrial operations in real time. The broader ambition is “adaptive intelligence”: AI that can respond dynamically to unpredictable environments rather than simply generate predictions. She also explores a critical strategic issue for the industry: the linguistic and cultural biases embedded in today’s AI models, and why the future of AI will depend on who builds it and whose worldviews shape its design.AI is our Business.UKAI is the Trade Association for AI businesses across the UK. Join us, ukai.co