Artificial intelligence adoption across Australia’s public sector is expected to accelerate sharply in 2026, with return on investment emerging as a central focus for boards and executives, according to GitHub.
The software development platform released its 2026 outlook as the Australian government unveiled its National AI Plan, committing $460 million to support AI capability, skills and governance across the economy. GitHub said the policy clarity provided by the plan, combined with tightening governance requirements, would unlock broader AI adoption, particularly within government agencies that have until now remained cautious.
Australia already ranks as the world’s 19th largest developer community on GitHub, with more than two million local developers building software on the platform. GitHub said a record number of Australian developers joined in 2025, with around 80 per cent using AI-powered tools such as GitHub Copilot within their first week, highlighting how quickly AI has become a baseline expectation for modern software development.
GitHub vice president for Asia Pacific Sharryn Napier (pictured) said 2026 would mark a shift from experimentation to value-driven adoption, as organisations move beyond pilots and focus on measurable outcomes.
One of the most significant changes is expected in the public sector, where clearer governance frameworks are reducing uncertainty around risk, compliance and accountability. Under current policy settings, every Australian government department and agency will be required to appoint a Chief AI Officer by July 2026, a move GitHub said would break the long-running AI adoption deadlock across government.
With stronger governance in place, agencies are expected to expand the use of AI agents beyond limited trials into operational workflows, provided platforms are secure, auditable and centrally governed. GitHub said this shift could also help government agencies compete for technical talent by modernising development environments and reducing reliance on legacy systems.
At the enterprise level, GitHub predicts that boards will increasingly mandate multi-model AI strategies, rather than locking organisations into a single AI provider. This approach is expected to be driven by cost control, resilience, flexibility and risk management concerns, as well as the need to adapt quickly to regulatory and technological change.
Under a multi-model strategy, developers and teams can select the most appropriate AI model for specific tasks, scale usage up or down, and reduce exposure to single-vendor dependencies. Boards are also expected to require greater oversight of AI usage to avoid what GitHub describes as “agent chaos”, ensuring AI systems remain reviewable, accountable and aligned with organisational goals.
Financial scrutiny of AI investment is also set to intensify. With Australian IT spending forecast to approach A$172 billion, much of it driven by AI initiatives, GitHub expects CFOs to demand greater transparency into AI costs, adoption and outcomes. This will push organisations to embed clearer visibility and controls at the team and project level, allowing leaders to distinguish between experimentation and initiatives that deliver measurable productivity or innovation gains.
GitHub said organisations that can clearly demonstrate the business impact of AI, whether through faster software delivery, reduced backlogs or new digital services, will be best positioned to justify further investment. In 2026, AI is expected to move from a perceived cost centre to a growth driver for organisations that can balance innovation with disciplined governance.
