Abstract
World action models (WAMs) improve robot control by modeling how observations evolve, but generating future observations at test time incurs substantial latency. Fast-WAM removes this process for efficiency; however, our matched implementations show lower generalization for Fast-WAM than for future-aware alternatives, especially with scarce robot demonstrations and in out-of-distribution scenarios. To bridge this gap, we introduce **LAWA**, a WAM architecture that uses compact latent actions as an operational representation of future intentions, enabling efficient test-time future imagination without generating future observations. Specifically, a discrete tokenizer enhanced by action-free pre-training produces manipulation-centric codebook targets. LAWA jointly denoises a continuous latent state anchored to these targets with executable action chunks while omitting the future-video branch at inference. On RoboCasa, LAWA achieves state-of-the-art average success rates of 65.6% and 80.8% in the few-shot and full data settings, improving over the matched Fast-WAM baseline by 9.6 and 4.5 points, respectively. It also preserves the performance level of the matched Joint-WAM variant while requiring 42.9% lower inference latency. LAWA also demonstrates competitive zero-shot robustness on LIBERO-Plus and superior performance on real-world tasks. These results show that future imagination need not be discarded: retaining it with compact latent actions yields an effective trade-off among performance, generalization, and latency. Code and models will be released.