GitHub tips AI agents to surge in Australia’s public sector

GitHub expects Australian public sector use of artificial intelligence agents to expand sharply in 2026 as new governance structures and funding rules take effect.

The developer platform has outlined a series of forecasts on how AI will change software development, oversight and investment decisions across Australian organisations.

The comments come as the federal government allocates AUD $460 million to a National AI Plan and mandates that every department appoint a Chief AI Officer by mid-2026.

GitHub said more than 2 million developers in Australia now use its platform. It said Australia ranks as the 19th largest developer community on GitHub worldwide, within a global network of over 180 million developers.

"This year, a record-breaking number of developers from Australia joined GitHub, reflecting growth trends from around the world. What's more, 80% of these new developers are using AI with GitHub Copilot in their first week, proving that AI is now a baseline expectation for new entrants into the field. In 2026, we'll witness another seismic shift as AI governance frameworks accelerate widespread investment and adoption, bringing ROI into the spotlight for enterprise leaders," said Sharryn Napier, Vice President, APAC, GitHub.

Public sector shift

Napier said government agencies sit at a critical moment for AI agent adoption. Many departments have limited AI projects to pilots because of risk and compliance concerns.

New governance directions and the creation of Chief AI Officer roles are expected to change this stance. GitHub said these moves will give agencies more confidence in large-scale use of AI agents.

"This new direction, combined with greater AI governance, will see Australia's public sector break its AI adoption deadlock. However, this can only come to fruition with secure, well-governed platforms, shifting AI agents from small pilots to large-scale transformation," said Napier.

The company said clearer rules and accountability should give public sector AI leaders more certainty about how they use agents. It said these leaders will balance innovation with responsible deployment.

Napier said better AI workflows could also influence public sector recruitment.

"This isn't about ticking regulatory boxes. By embracing an agentic future, government agencies can also become a talent magnet. AI-powered workflows will attract developers who have long avoided the sector due to legacy systems and slow delivery cycles, unlocking a new wave of innovation and better outcomes for citizens," Napier added.

Boardroom focus

GitHub forecasts that AI strategy will move further into the boardroom through 2026. It expects directors to push for what it calls "multi-model neutrality".

The company said boards will favour use of multiple AI models rather than reliance on a single system. It said this approach gives organisations more control over costs and resilience.

"Australian boards will play a more active role in shaping AI strategy next year. Multi-model neutrality isn't just a technical preference, it's a smart business policy. By diversifying their AI models, organisations can pick the right one for the job at hand, dial costs up or down, reduce operational risks, and respond faster to changing market demands. It's about giving teams the freedom to innovate with the tools that work best for them. Ultimately, a multi-model strategy enables developers and employees to be orchestrators of multiple agents, which leads to experimentation and more innovation," said Napier.

Boards are expected to demand central oversight of AI systems and outputs. GitHub said directors will seek strong review processes and accountability to address what it describes as "agent chaos".

The company said organisations will prioritise AI as a standard part of their operations. It said boards will want AI use that can adjust quickly to new regulations and technical advances.

ROI and controls

GitHub expects AI spending and financial controls to tighten in parallel. It cited forecasts that Australian IT spending will reach AUD $172 billion, with AI a major driver of that growth.

The company said Chief Financial Officers will ask for granular visibility over AI costs at team level. It said executives will demand proof of measurable outcomes from AI projects.

"As 2025 closes and AI investment accelerates, Australian enterprises will need crystal-clear visibility into strategic AI initiatives. Those that can clearly demonstrate transformative impact - whether through breakthrough innovations, new products, or cleared backlogs - will make ROI tangible, earning trust for larger, more strategic investments. In 2026, organisations that master this approach will set the pace for AI-led growth, turning AI from a cost centre into a catalyst for innovation, productivity, and competitive advantage," said Napier.

GitHub said organisations will embed monitoring and cost controls into AI deployments. It said the aim is to keep AI as both a strategic priority and a disciplined line item within wider technology budgets.

The company expects those changes in governance, board oversight and financial scrutiny to shape how Australian developers and enterprises use AI agents through 2026.