AI, data governance & edge to define 2026 for Australia

Australian businesses face a pivotal year in 2026 as they confront rising expectations around artificial intelligence adoption, data governance and edge infrastructure, according to senior technology executives watching the local market.

Leaders in sectors such as healthcare, aged care and construction are expected to face particular scrutiny as they manage operational risk and regulatory pressure while experimenting with new digital tools.

Commentary from Smartsheet and Nutanix points to a twin focus on embedding AI into everyday work and tightening control over where and how data is processed, especially at the network edge.

"I see two key trends ahead for ANZ businesses in 2026. First, an opportunity to improve productivity with AI. And second, increasing pressure for project visibility and data governance. This is most acute in sectors like healthcare, aged care, and construction, where operational consistency and compliance are non-negotiable. Clear strategies and tools that unify people, data, and AI are becoming essential, enabling leaders to maintain control while driving meaningful outcomes," said Jarrod Kinchington, Vice President Australia and New Zealand, Smartsheet.

Executives expect these forces to reshape how projects are run, how infrastructure is designed and how boards assess risk around new technology deployments.

AI adoption

AI pilots have spread quickly across Australian organisations during the past two years. Many teams now deploy generative tools and automation in pockets of the business. The focus in 2026 is likely to shift towards consistent, organisation-wide adoption.

Kinchington said the hardest work now sits on the human and organisational side rather than on choosing software.

"When it comes to AI, choosing which tools to deploy is often the easy part. The true challenge lies in change management: getting employees to adopt new technology and fundamentally change their work practices. People are demonstrating high curiosity and a willingness to use AI, but achieving integrated, organization-wide adoption is the next frontier. One of the most effective ways to achieve this is to embed AI directly into existing workflows so employees don't have to learn how to use a new tool. For example, Smartsheet's AI features fit easily into existing workflows, so they don't disrupt the way teams already work," said Kinchington.

That approach aligns with a broader shift towards work management platforms and collaboration tools that integrate AI into established processes rather than adding standalone applications.

Risk and governance

Alongside enthusiasm for AI, executives highlight growing concern about unmanaged use of new technologies and the potential for errors or bias in automated decisions.

Kinchington said boards and technology leaders are examining governance arrangements more closely as data volumes grow and regulatory expectations become stricter.

"We're also seeing an increasing need for risk mitigation. Without structured processes and oversight, risks around inefficiency, miscommunication, and biased outcomes remain high. This is compounded by the critical need for robust data governance. With data breaches becoming increasingly common, the ability to guarantee data residency, traceability, and auditability is now non-negotiable for Australian businesses assessing new technology vendors," said Kinchington.

Organisations in regulated industries face particular pressure around data residency requirements and audit trails. Vendors are being assessed on how they manage storage locations, access controls and reporting obligations.

Project visibility

Smartsheet expects 2026 to bring more demand for real-time oversight of projects and programmes as executives seek firmer evidence of return on investment. That is driving interest in tools that standardise workflows and consolidate data from multiple teams.

Kinchington said clearer visibility is emerging as the link between effective governance and successful AI use.

"At Smartsheet, we see a clear parallel: visibility is key. Just as leaders cannot approve a project for which they cannot see the ROI, organisations cannot optimise work or leverage AI effectively if they lack oversight. Platforms that embed standardised workflows and provide real-time insights empower teams to act decisively and mitigate risk. For Australian businesses, the message is clear: proactively adopting integrated work management and AI-driven practices isn't optional-it's a strategic imperative. Those that act now will improve efficiency, project outcomes, and position themselves as leaders in operational and AI-driven excellence."

Sovereign edge

Infrastructure providers see similar themes at the network edge, where companies process data closer to where it is generated. Nutanix expects the "sovereign edge" to expand as AI workloads move into factories, hospitals, retail locations and remote sites.

"The sovereign edge will continue to evolve.

AI is a force for more distributed infrastructure as AI moves out to process data generated at the edge. Enterprises will need to consider the global management, distributed security, and remote recovery/destruction policies available for the sovereign edge and rely more on platform engineering to successfully achieve this.

As AI continues to skyrocket in adoption, businesses will look to find ways to process AI-related data locally. As a result, organisations will look to global management solutions with integrated security and edge resiliency to help keep this in check," said Lee Caswell, Senior Vice President, Product and Solutions Marketing, Nutanix.

Vendors expect Australian organisations to review their infrastructure architectures as these trends converge, particularly in sectors that collect large volumes of operational data in regionally distributed facilities.