The latest Fosway 9-Grid™ Talent Acquisition report for 2025 has just landed. It reveals a market undergoing profound transformation. As talent acquisition teams grapple with economic uncertainty, they face skills shortages and the AI revolution. This year’s analysis shows which vendors are rising to meet these challenges. It also shows which are falling behind.
The economic reality check
The 2025 report paints a sobering picture of the current market conditions. Budgets are tightening across many industries. Hiring volumes are dropping. Talent acquisition teams are under pressure to do more with less. This economic backdrop has created a fascinating dynamic where innovation isn’t just nice to have—it’s essential for survival.
Fosway’s research reveals that some vendors have struggled with reduced growth. They face longer buying cycles. Others have thrived by offering genuine value. They give demonstrable ROI. The winners are those who’ve moved beyond feature lists to deliver measurable business outcomes.
AI & skills: From hype to reality
The most significant trend highlighted in this year’s report is the maturation of AI in talent acquisition. The research shows that AI solutions are no longer experimental add-ons but core requirements for competitive advantage.
The report identifies several key AI developments:
- Generative AI adoption is accelerating, with most vendors now offering AI-powered content creation for job descriptions and candidate communications
- Conversational AI interfaces are becoming standard, allowing candidates to interact directly with AI agents throughout the application process
- Skills-based matching powered by large language models is finally delivering on its promise, moving beyond keyword matching to understand true capability fit
The movers and shakers
Rising stars
The 2025 analysis reveals some notable climbers in the rankings:
- Phenom continues its upward trajectory, now positioned as a Strategic Leader. Their talent intelligence platform and AI-driven candidate experience innovations have clearly resonated with enterprise buyers seeking comprehensive solutions.
- Paradox has strengthened its position as a Strategic Challenger, with their conversational AI platform gaining significant traction. Organisations aim to automate repetitive tasks. They also want to improve candidate engagement. Because of this, Paradox’s “Olivia” AI assistant has become increasingly attractive to high-volume recruiters.
Established leaders adapting
The traditional powerhouses haven’t stood still:
- Workday maintains its Strategic Leader position, successfully integrating advanced AI capabilities into its comprehensive HCM suite. Their ability to offer seamless talent acquisition within a broader workforce management ecosystem continues to appeal to large enterprises.
- SAP remains a Strategic Challenger. Their SuccessFactors platform is evolving to meet modern demands. It continues to serve their extensive enterprise customer base.
Specialist Innovation in skills
The specialist segment shows particular dynamism:
- Spotted Zebra makes its debut in the 2025 grid as a Potential Challenger. It brings innovative skills assessment capabilities. These capabilities align with the industry’s shift toward skills-based hiring.
- HrFlow.ai emerges as a Potential Leader. It signifies the new wave of AI-native talent intelligence solutions. These solutions are reshaping how organisations understand and engage talent.
Key talent acquisition market trends shaping the landscape
1. The consolidation imperative
Fosway’s research highlights how budget pressures are driving ecosystem consolidation. Organisations want to reduce vendor complexity. They are favouring platforms that can handle multiple aspects of the talent acquisition process. They prefer these over best-of-breed point solutions.
This trend particularly benefits suite providers like Workday and Oracle. It also creates opportunities for innovative platforms that can show comprehensive value.
2. Skills-based hiring goes mainstream
The report emphasises that skills-based recruitment is no longer optional. Traditional qualifications are becoming less predictive of success. Skills are becoming obsolete faster than ever. Organisations need technology that can find and match capabilities rather than credentials.
Vendors offering sophisticated skills inference, assessment, and matching capabilities are seeing increased demand. Those stuck in keyword-matching approaches are struggling.
3. Candidate experience as competitive advantage
In a tight labour market, candidate experience has become a key differentiator. The report shows that organisations are heavily investing in technologies. These create seamless and engaging candidate journeys. This ranges from AI-powered chatbots to mobile-optimised application processes.
4. Programmatic advertising maturity
The research reveals that programmatic job advertising is finally reaching maturity. Vendors in this space are moving beyond simple click-to-apply models. They are now focusing on sophisticated performance optimisation. Some vendors are achieving remarkable improvements in cost-per-hire metrics.
The vendor landscape reshuffled
New entrants making waves
This year’s grid includes several newcomers that show emerging market needs:
- Talkpush brings conversational recruiting capabilities specifically designed for high-volume, mobile-first candidate engagement
- Socially Recruited (now Gaia) shows the evolution of social recruiting into sophisticated talent community building
Notable departures
The 2025 analysis also sees some vendors dropping out of the grid, highlighting the market’s increasingly demanding requirements. HiredScore‘s acquisition by Workday exemplifies the consolidation trend. Other exits show the challenges of competing in an increasingly sophisticated market.
Looking ahead: What this means for talent teams
The 2025 Fosway 9-Grid™ offers several key insights for talent acquisition leaders:
1. AI adoption is non-negotiable
Organisations still evaluating AI solutions risk falling significantly behind. The question is no longer whether to adopt AI, but how quickly you can implement it effectively.
2. Platform thinking wins
Whilst best-of-breed solutions still have their place, the trend toward platform consolidation is clear. Talent teams should prioritise vendors that can grow with their needs rather than forcing complex integrations.
3. ROI Measurement is critical
With budgets under pressure, demonstrable return on investment has become essential. The vendors succeeding in this environment are those that can clearly articulate and prove their business value.
4. Skills-first strategy required
The shift toward skills-based hiring isn’t a future trend—it’s happening now. Organisations need technology that can support this fundamental change in how they identify and assess talent.
The verdict
The 2025 Fosway 9-Grid™ reveals a talent acquisition market that’s more dynamic and demanding than ever. Economic pressures haven’t stifled innovation. They’ve accelerated it. Vendors must prove their worth through genuine business value rather than flashy features.
For talent acquisition professionals, this creates both challenges and opportunities. The right technology choices can deliver significant competitive advantages. Yet, the wrong ones risk leaving you behind in an increasingly AI-driven market.
As we move further into 2025, one thing is clear. The organisations that embrace this new landscape will be successful. They will do so by leveraging AI, focusing on skills, and prioritising candidate experience. These organisations will attract and secure the talent they need to thrive.
The Fosway 9-Grid™ continues to be an invaluable resource for talent acquisition leaders navigating this complex and rapidly evolving market. This year’s analysis offers crucial insights for those making strategic technology decisions. It reveals which vendors are truly prepared for the future of talent acquisition.
Ready to navigate this evolving talent technology landscape? At GMZ, our Diagnostic & Consult service helps organisations make informed decisions about their recruitment and talent acquisition. It also aids in optimising employer brand technology investments.
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