Australia’s top tech priorities for 2026

Technological progress, including remote work and the transition to AI, has shaken up the nation’s workforce. The Australian Department of Industry, Science and Resources, has found that 40% of SMEs have embedded AI technology into their operations. And while adoption rates vary across industries, AI has become a core driver of competitiveness heading into 2026. It is now anticipated that AI will evolve from a pilot project to a productive standard, underpinned by cloud ecosystems and cybersecurity.

So what does this shift mean for businesses navigating the new normal?

1. A focus on resilience and agility

According to a KPMG report, the top challenges for Australian business leaders in 2025 were digital transformation, optimisation and its ROI (53%), followed by cyber risks (42%). As a result, resilience and agility have emerged as critical pillars underpinning the success of companies adapting to accelerating technology adoption and an uncertain global economy heading into 2026.

Organisations that build systems capable of withstanding ongoing volatility, absorbing geopolitical, cyber, and technological shocks, will gain a clear competitive edge. Achieving this requires a fundamental change in mindset, supported by flexible, cloud-native architectures and real-time data analytics that enable faster and more confident decision making.

Forward-looking Australian businesses that embed agility into their DNA will increasingly find that disruption is no longer a threat to survival, but a catalyst for innovation, growth and cohesive organisational culture.

2. Transformation of ERP from back office to strategic success factor

Migrating ERP systems to the cloud has been a deterrent for many companies, primarily due to the high initial cost. This is set to change in the new year, with Gartner forecasting that 90% of organisations will adopt a hybrid cloud approach through 2027, underlining that migrating to the cloud will no longer be a question of ‘if’ but ‘when’ — and how quickly.

Australian business leaders accept that the integration of cloud-based systems with technologies like AI, IoT and blockchain creates a digitally connected enterprise that can react faster and scale more robustly. This shift both reduces technical debt and upfront investments, eliminating silos within teams and ensuring a more integrated data exchange that boosts decision-making. Businesses that seize this opportunity will achieve real-time transparency across operations in 2026, securing crucial competitive advantages in a fiercely contested environment.

3. Generative AI and agentic AI take centre stage

The paradigm shift in enterprise intelligence was ushered into 2025 with generative AI and agentic AI, and is set to intensify in the coming year. This mirrors research from Adobe, which shows that nearly one in five Australians have used agentic AI, and a further 42% expect to use it in their daily lives within the next year.

Both generative and agentic AI will surpass traditional automation by enabling systems that not only execute tasks but also anticipate needs, generate innovative solutions, and take autonomous actions aligned with corporate goals. For ERP applications and supply chain management, this marks a transition from reactive processes to proactive ecosystems, where AI agents optimise inventory levels, accurately forecast demand, and identify cost-saving potential, fundamentally changing the way companies compete and create value.

4. Security as a multi-layered strategy that empowers the workforce

The adoption of Zero Trust security architecture will be essential in 2026 to strengthen stakeholder trust, build corporate resilience, and secure a hybrid workforce. While AI revolutionises IT security, it simultaneously presents new challenges.

Zero Trust fundamentally assumes security breaches will occur and requires continuous verification at every access point. This involves multi-layered security strategies that use AI-supported analytics, behavioural monitoring and automated responses.

Embedding a Zero Trust culture does not imply a lack of trust in employees. On the contrary, it empowers the workforce with AI-supported threat intelligence, enabling the detection and neutralisation of complex attacks in real time, protecting sensitive data and securing day-to-day operations.

5. Counteracting the skilled worker shortage

The shortage of qualified and specialised IT professionals will not be alleviated by recruitment alone in 2026. The government’s vision to build a tech workforce of 1.2 million by 2030, alongside its commitment to help Australians around the country access these jobs, will be futile unless the workforce keeps pace with rapidly changing organisational requirements and technological progress.

There is no denying that Australian companies will increasingly use AI and automation to augment human capability. But tapping into underutilised workforce skills and creating flexible, inclusive and meaningful workplaces will be crucial to attracting and retaining top talent in a highly competitive labour market. Ultimately, in 2026, technology and people must work in tandem to drive innovation and growth.

*Terry Smagh is Senior Vice President & General Manager, Asia Pacific and Japan at Infor. Terry is passionate about driving SaaS adoption and growth across the fastest-growing region for Infor, and helping customers derive quick value from their business transformation and technology investments.

Top image credit: iStock.com/GamePH