There is a time delay between perception and action; therefore, our internal representations of sensory stimuli must be predictive.
An organism's best guide to the future is the past. However, there is no way any finite physical substrate can store memory of the entire past. In other words, there is a tradeoff between memory and prediction. Increases in memory can lead to increases in predictive power. During graduate school, I tried to establish and calculate universal information-theoretic lower bounds on the costs of predictive sensory processing.