For years, technology has advanced faster than most organisations’ ability to harness it. But as the era of data evolves into the era of AI, that gap has never been so visible.

While the technical capability now exists to do remarkable things with data, few organisations are sufficiently mature to convert that capability into safe, sustained, and measurable value. If early AI adoption was dominated by experimentation through the use of copilots and chatbots, the challenge now is turning those isolated gains into enterprise-wide capability.

This has made scaling AI one of the key challenges of modern IT, and it is proving to be an execution challenge rather than a model challenge.  Competitive advantage is shifting from who has access to AI in favour of who can deploy it consistently, securely, and accountably. Successful organisations are those investing in governance, data foundations, operating models, workforce readiness, and change management.

That challenge of scaling becomes more acute as organisations attempt to harness agentic capabilities. While task-specific agents are already being tested across defined workflows, large-scale adoption risks creating agent sprawl, especially as first- and third-party agents become embedded in enterprise applications. This makes visibility, ownership, and controls a priority.

The desire to create value from data is also raising awareness of the value of that data – both to those who own it, and those who would steal it – and placing greater emphasis on data sovereignty and compliance. In Australia, the question is not simply where data is stored, but who (or what) can access it, how it is used, and whether organisations can demonstrate appropriate control. Privacy reform, security obligations, and regulatory scrutiny are increasing the need for transparency, auditability, and accountability.

The next frontier for data and AI is achieving true business outcomes at scale. But scale will be of little value if organisations cannot also maintain trust.

The 2026 iTnews State of Data & AI report was created using insights, research, and opinion from industry analysts, and end-user case studies, to provide a compelling overview of the key trends, challenges and opportunities when it comes to data and AI in cross-section of Australian business.

Hear from Australian technology leaders in the following chapters including:

• James Cosier, General Manager for Data, Integration, and Automation, Brickworks
• Anushree Verma, Senior Director Analyst, Gartner
• Madhumita Mazumdar, Executive General Manager for Technology, Journey Beyond
• Carly Kind, Privacy Commissioner, Office of the Australian Information Commissioner
• Julius Anuari, Senior Administrator, Eightcap