OpenAI finally released its new o1 model last week . This model is supposed to be good at reasoning. We wanted to see how well it can analyze data in one of our graphs, so we used the post-reg question we're currently asking about top HR issues over the next 12 months.

See the image of the graph below. 

"Based on this graph, please predict which types of HR vendors will be in greatest customer demand in 2025 (which begins next month). I would like to know the categories of vendors that will be in greatest demand as well as the names of specific vendors that will likely lead in each category." Below is how it responded. It's not perfect but it is pretty impressive.

  Overview:The chart indicates that Performance Management, Leadership Development, and areas like Organizational Communication, Employee Retention, Legal/Compliance Issues, and Employee Experience are top priorities for HR leaders going into 2025. In addition, emerging interest in Artificial Intelligence, Succession Planning, Organizational Well-being, and other strategic HR areas suggests a shift towards more integrated, technology-driven, and people-centric solutions.Given these priorities, the greatest demand will likely be for vendors that address these critical needs. Below are the primary categories and examples of leading or rapidly emerging vendors in each segment.1. Performance ManagementWhy in Demand:
Performance management is the clear front-runner (39%) in the survey results. Organizations are seeking improved continuous feedback, goal alignment, and better linkage of performance outcomes to compensation, career paths, and organizational strategy.Vendors Likely to Lead:

• Workday: Offers robust performance, talent management, and analytics modules that can be integrated with core HR systems.
• SAP SuccessFactors: Well-established for performance and goal management, succession planning, and integrated analytics.
• Cornerstone OnDemand: Known for its talent management suite, including performance and learning modules.
• Lattice or 15Five: Specialized performance and engagement platforms known for user-friendly interfaces and continuous feedback loops.
• Betterworks: Focused on goal-setting (OKRs), continuous performance improvement, and transparent accountability.

2. Leadership DevelopmentWhy in Demand:
At 26%, leadership development remains a top priority, as companies work to build strong internal pipelines of future leaders, especially in the face of demographic shifts and evolving business models.Vendors Likely to Lead:

• DDI (Development Dimensions International): Renowned for assessments, leadership coaching, and competency-based development programs.
• Korn Ferry: A global provider of leadership assessment, coaching, and executive development solutions.
• FranklinCovey: Offers leadership training, management workshops, and skill-building frameworks.
• BetterUp: Provides digital coaching at scale, focusing on leadership resilience, performance, and behavioral changes.

3. Organizational Communication & Employee EngagementWhy in Demand:
At around 24%, organizational communication solutions that enable transparent, inclusive, and frequent interactions are crucial, especially in hybrid and remote work contexts. Communication closely ties to employee engagement and retention.Vendors Likely to Lead:

• Microsoft Teams and Slack (by Salesforce): Already dominant collaboration platforms used for real-time communication.
• Workplace from Meta: A social media-style platform that fosters community and engagement.
• Qualtrics EmployeeXM or Peakon (Workday Peakon Employee Voice): While known for engagement surveys, they also help shape communication strategies informed by employee feedback.
• Enboarder: An engagement platform focused on meaningful employee journeys and communication nudges.

4. Employee Retention & ExperienceWhy in Demand:
At about 23-24%, focus on retention and the holistic employee experience indicates that companies need tools that measure engagement, identify attrition risks, and improve the overall workplace environment.Vendors Likely to Lead:

• Culture Amp: Known for comprehensive engagement surveys, analytics, and continuous feedback.
• Glint (LinkedIn/Microsoft): Provides employee engagement insights, helping leaders act on feedback to improve retention.
• Achievers: Specializes in recognition and rewards, boosting retention through positive reinforcement.
• Workhuman: Recognition and feedback platform fostering appreciation, connectivity, and improved employee experience.

5. Legal and Compliance SolutionsWhy in Demand:
With 24% highlighting legal and compliance issues, employers will seek vendors that simplify complex regulatory environments, ensuring compliance with labor laws, data protection, DEI mandates, and pay equity requirements.Vendors Likely to Lead:

• ADP: Offers compliance support, payroll, and HR management tools.
• UKG (Ultimate Kronos Group): Provides compliance reporting, labor law tracking, and workforce management solutions.
• Navex: Specializes in risk and compliance software, including whistleblower hotlines, policy management, and training.

6. Artificial Intelligence & Analytics in HRWhy in Demand:
About 23% see AI as critical, indicating a demand for predictive analytics, talent intelligence, and automated workflows. AI-driven solutions help identify high-potential talent, reduce bias in recruiting, streamline performance reviews, and make data-driven decisions.Vendors Likely to Lead:

• Eightfold AI: A platform that leverages deep learning for talent acquisition, internal mobility, and career planning.
• Visier: A people analytics solution that helps HR teams glean actionable insights from workforce data.
• Paradox.ai: An AI-driven recruiting assistant that automates applicant screening and scheduling.
• Beamery: Talent lifecycle management and AI-driven talent intelligence platform.

7. Succession Planning & Talent ManagementWhy in Demand:
At about 23%, succession planning and talent management software will be vital as companies look to mitigate skill shortages and plan for demographic shifts (e.g., retirements, internal promotions).Vendors Likely to Lead:

• Workday: Known for integrated succession planning and career development features.
• SAP SuccessFactors: Offers robust succession and development modules, integrated with performance and learning.
• Oracle HCM Cloud: Comprehensive HCM suite with talent reviews, succession planning, and skill inventories.
• Cornerstone OnDemand: Talent management features including succession planning, competency mapping, and learning.

8. Organizational Well-being & Employee Well-being ToolsWhy in Demand:
Around 22% highlight organizational well-being. Post-pandemic, psychological safety, mental health support, and holistic well-being initiatives are increasingly important to retain talent and maintain productivity.Vendors Likely to Lead:

• Virgin Pulse: Focused on employee wellness, healthy habits, and well-being initiatives.
• Headspace for Work: Offers guided meditations, mindfulness training, and mental health resources.
• Limeade: A platform for employee well-being and engagement with actionable insights.
• Spring Health: Personalized mental health support services and access to professional counseling.

Conclusion:
In 2025, as HR priorities continue to shift toward strategic talent development, data-driven decision-making, inclusive leadership pipelines, and a strong emphasis on employee experience, the vendors most in demand will be those providing integrated and AI-augmented performance management, comprehensive leadership development, robust communication and engagement platforms, streamlined compliance and risk management tools, and holistic well-being solutions. The leaders will be those long-established enterprise HRIS/HCM suites that have evolved to include people analytics and compliance features, as well as nimble, specialized vendors that excel in specific, high-priority areas identified in the survey.
This is pretty impressive but a few glaring mistakes. What do you all think