Applying Theory of Mind: Can AI Understand and Predict Human Behavior?

“Theory of Mind” (ToM) is the ability to understand that others have their own thoughts and beliefs, even when they differ from ours — a skill that underpins human interaction. But ToM isn’t just about knowing others’ mental states (explicit ToM); it’s about applying that knowledge in real-world situations, like interpreting how thoughts drive actions, decisions, and even misunderstandings (applied ToM). But can current models in artificial intelligence (AI) do this too?