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The free energy principle, developed by Drs. Friston and Wolfram, offers insights into the behavior and characteristics of observers. An observer, unlike a passive object, has agency and the ability to plan and make choices. The principle suggests that observers actively seek to minimize surprise and maximize predictability in their environment. This requires the construction of internal models that capture beliefs about the causes and consequences of sensory input. The concept of counterfactual thinking and the ability to explore different trajectories are key components of an observer. The boundary between the observer and the observed, known as the Markov blanket, separates internal states from external states. The observer's actions and feedback from the environment are crucial for maintaining a coherent identity and making predictions. While it may be challenging to identify the presence of counterfactual planning and agency in a system purely from external observations, it is crucial in understanding the behavior of observers.