From Isolated Tasks to Structured Capabilities: A Multilayer Taxonomy for Large Language Models

When LLMs exhibit uneven performance across planning tasks, these gaps are often attributed to task difficulty. We argue that this explanation is incomplete, as task-level variation may reflect distinct latent planning competencies rather than differences along a single ability spectrum. We study this question on ACPBench-Hard by evaluating multiple LLM families under varying test-time reasoning budgets and applying a multidimensional item response theory model to uncover the latent competency structure underlying LLM planning. The analysis reveals two principal dimensions that shape planning performance: operational reasoning, the ability to evaluate local action applicability and immediate state transitions, and structural enumeration, the ability to reason about goal reachability and landmark structure. Operational reasoning improving under model scaling and longer reasoning traces, while structural enumeration remains comparatively insensitive. Our findings motivate competency-level evaluation of LLM planning, shifting the focus from whether models improve overall to which planning competencies improve, under what conditions, and why.

Large Language Models (LLMs) have achieved strong performance across natural language processing tasks, yet reliable reasoning remains an open challenge. Although modern LLMs show progress in structured inference, multi-step problem solving, and contextual understanding, their reasoning behavior is often inconsistent and sensitive to prompting strategies, task design, and model scale. This survey provides a systematic analysis of more than 300 recent papers from arXiv, Semantic Scholar, Google Scholar, Papers with Code, and the ACL Anthology to examine how reasoning capabilities emerge in LLMs and where they fail. We make three main contributions. First, we introduce a structured taxonomy of LLM reasoning research, covering Chain-of-Thought reasoning, multi-hop reasoning, mathematical reasoning, common sense reasoning, visual and temporal reasoning, code and algorithmic reasoning, retrieval-augmented reasoning, tool-augmented and agentic reasoning, and reinforcement learning-based reasoning. Second, we analyze methodological trends across these paradigms, including prompting methods, model architectures, training objectives, reward modeling, and evaluation benchmarks. Third, we synthesize recurring limitations and failure modes, such as reasoning hallucinations, brittle multi-step inference, weak causal abstraction, and poor cross-domain generalization. By organizing a rapidly expanding literature, this survey offers a unified view of the current capabilities and limitations of reasoning in LLMs. We also identify emerging research directions, including meta-reasoning, self-evolving reasoning frameworks, multimodal reasoning, and socially grounded reasoning. Overall, this work aims to serve as a reference for developing more robust, interpretable, and generalizable reasoning systems in future language models.

Existing benchmarks typically report accuracy for a single model on a single run. This systematically understates real-world LLM capabilities, particularly under heterogeneous data distributions: (i) different models get different questions correct according to their specializations, and (ii) given a budget, multiple generations can be sampled and selectively retained. To quantify this gap, we introduce the Capability Frontier: a Pareto frontier over a set of models that characterizes the best achievable performance at each cost level under optimal selection across models and generations (i.e., via an oracle). Our construction corrects for two opposing biases: underestimation from single-model evaluation and overestimation from taking maxima over noisy samples. We study 21 LLMs across 16 widely used benchmarks spanning coding, reasoning, medicine, factuality, instruction following, and agentic tasks, comparing Capability Frontier performance at matched cost to each benchmark's top-performing model. Correcting for single-model evaluation yields a 54% error rate reduction; additionally correcting for single runs yields an 82% improvement, with SOTA accuracy matched at 85% cost reduction. Complementing these empirical results, we use controlled probabilistic simulations to show that higher query topic entropy produces a near-monotonic increase in the performance gap between oracle routing and the best single model. Our findings suggest collective LLM capabilities are substantially underestimated, with implications for evaluation and deployment in data-heterogeneous, multi-domain settings.