According to Demis Hassabis, Genie 3 can now accurately model intuitive physics, including complex elements such as lighting, gravity, material interactions, and especially liquids. The latest demonstration shows highly realistic water movement when a character interacts with a puddle, highlighting significant progress in AI-driven physics simulation for virtual environments. This advancement enables developers to create more immersive and responsive gaming experiences and opens new business opportunities in animation, virtual reality, and digital content creation by reducing reliance on manual coding for physical effects (source: Demis Hassabis on Twitter).