Dan Kregor - 10.02.202620260210

Australia | Agentic AI Takes the Wheel: A Deep Dive into 2026

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Agentic AI Takes the Wheel: A Deep Dive into 2026

Australia | Agentic AI Takes the Wheel: A Deep Dive into 2026

From experimental curiosity to enterprise imperative, how autonomous AI agents are reshaping the way we work.  

As I flagged in my earlier piece on the Six Tech Trend Predictions for 2026, agentic AI isn’t just another buzzword destined for the corporate jargon graveyard. It’s the real deal and 2026 is the year it graduates from intriguing prototype to operational reality. 

The numbers tell a consistent story globally. Gartner predicts 40% of enterprise applications will feature task-specific AI agents by year’s end, up from less than 5% in 2025[1]. Deloitte expects 75% of companies to invest in agentic AI[2]. In Asia-Pacific, IDC forecasts AI investments will grow 1.7 times faster than overall digital spending, creating a $1.6 trillion economic impact by 2027[3]. But while the direction is clear, the speed and obstacles vary dramatically by region, regulatory environment, and organisational appetite for uncharted waters. 

What “Agentic AI” Actually Means

If traditional AI assistants answer questions when asked, agentic AI actually “does the work” autonomously planning, executing, and adjusting based on results. An everyday example is, a chatbot tells you how to book a meeting. Whereas an agentic system checks calendars, finds optimal times, sends invitations, books the room, prepares the agenda, and follows up with non-respondents all from a single instruction. 

Gartner describes this evolution in five stages: from embedded assistants (where most sit today) through task-specific agents (2026’s frontier) to collaborative agent ecosystems by 2028-2029. By 2029, they predict half of all knowledge workers will create, govern, and deploy agents on demand[4]

What separates genuine agentic AI from rebranded automation? Three capabilities: 

  1. Autonomous reasoning (breaking complex goals into subtasks and adapting when approaches fail)
  2. Tool orchestration (accessing APIs, databases, and other AI systems)
  3. Persistent context (maintaining awareness of ongoing projects and organisational knowledge). Industry analysts estimate only about 130 of thousands of claimed “AI agent” vendors are building genuinely agentic systems[5]. Watch for “agent washing” vendors rebranding existing automation with a shiny new label.

The Enterprise Reality: A Tale of Different Speeds

Let’s be honest about where most organisations stand. McKinsey reports that while 88% use AI in at least one function, fewer than 10% have deployed agentic AI at functional scale[6]. Deloitte finds only 14% have solutions ready for deployment; 42% are still developing their strategy[7]

These global averages mask significant regional variation. Asia-Pacific is moving fastest with AI spending having reached $90.3 billion by early 2025, while enterprises shifting from pilots to enterprise-wide orchestration[8]. Singapore stands out: 20% of security leaders completely trust AI for mission-critical tasks, nearly double the global average[9]

Europe is more cautious. Forrester reports only 6% of European consumers use generative AI daily, with enterprise adoption trailing the US due to data sovereignty concerns and less mature AI skills[10]. European boards increasingly call for “digital autonomy,” but practical alternatives to US hyperscalers remain elusive. 

Australia and New Zealand present an interesting middle ground. The National AI Centre reports 41% of SMEs using AI, up five points in one quarter[11]. Major banks have moved past experimentation to company-wide deployment, with notable emphasis on “context engineering” ensuring AI systems understand organisational data, not just have raw capability. 

China has fundamentally altered the economics. DeepSeek’s V3 model achieved GPT-4o (o for “omni”) performance at roughly $5.6 million training cost versus $100 million-plus for US competitors[12]. Chinese open-source models now power nearly 30% of global AI usage, up from 1.2% in late 2024. The efficiency revolution is democratising access globally. 

Regardless of region, three obstacles trip everyone up: 

  1. Legacy system integration (Gartner predicts over 40% of agentic projects will fail by 2027 because legacy systems can’t support modern AI demands[13])
  2. Data architecture constraints (most organisational data isn’t positioned for agent consumption), and 
  3. Skills gaps (Forrester predicts 30% of large enterprises will mandate AI literacy training by year’s end)[14].

The Microsoft Ecosystem: Agent 365 and the “Frontier Firm”

For those living in Microsoft 365 (guilty as charged), 2025 saw significant developments. Microsoft has gone all-in on the “Frontier Firm” organisations that are “human-led and agent-operated.” 

The centrepiece is Agent 365, announced at Ignite 2025 is a control plane for managing, securing, and governing your entire fleet of agents[15]. It provides registry (knowing what agents exist), access control, visualisation, interoperability, and security capabilities. Copilot Studio has evolved with GPT-5 integration now generally available, while Agent Mode in Office apps enables iterative collaboration where Copilot actively helps create documents, spreadsheets, and presentations[16]

The Model Context Protocol (MCP) adoption is worth noting this open standard allows agents to securely connect data across disparate systems. Forrester predicts 30% of enterprise app vendors will launch MCP servers in 2026, signalling a more interoperable future where agents from different vendors can work together[17].

The Governance Imperative: When Agents Go Wrong

Here’s a statistic that should make every security professional sit up.  100% of organisations surveyed have agentic AI on their 2026 roadmap. Not 95%. Every single one[18]

Now the uncomfortable part: while everyone’s racing to deploy agents, most can’t control them when things go sideways. Research shows 63% cannot enforce purpose limitations on AI agents, 60% cannot terminate misbehaving agents quickly, and 55% cannot isolate AI systems from sensitive networks[19]. Forrester predicts 60% of Fortune 100 companies will appoint a head of AI governance in 2026[20]. Gartner warns over 2,000 “death by AI” legal claims could emerge due to insufficient guardrails[21]

The Regulatory Patchwork 

If you operate globally, 2026 brings varied regulatory requirements: 

European Union: The EU AI Act becomes substantially operational on August 2, 2026[22]. Rules for high-risk AI systems take effect, transparency obligations become mandatory, and each Member State must establish AI regulatory sandboxes. If your agents make decisions in employment, credit, or critical infrastructure, you’ll need to demonstrate compliance with specific transparency, oversight, and risk management requirements. 

United Kingdom: A lighter-touch approach through existing regulatory bodies (ICO, Ofcom, FCA) rather than new AI-specific regulation. A comprehensive AI bill has been delayed until 2026 or later[23]

Asia-Pacific: Approaches vary significantly. Singapore has published agentic AI security guidelines; India released AI Governance Guidelines; China updated its Cybersecurity Law with AI provisions[24]. The regional trend is toward sovereign AI ecosystems keeping sensitive workloads within national borders. 

Australia: The government’s AI plan is expected to incorporate data localisation requirements[25]. Organisations are preparing for tighter sovereignty rules, mapping digital supply chains for cross-jurisdictional flexibility. 

The practical implication? If deploying agentic AI across regions, you need governance frameworks that adapt to local requirements while maintaining operational consistency. IBM reports 93% of executives now consider AI sovereignty a strategic priority[26]

The concept of “bounded autonomy” is emerging as best practice: clear operational limits, escalation paths to humans for high-stakes decisions, and comprehensive audit trails. Think of it as giving your AI agents a detailed job description and a supervisor who actually pays attention. 

Where Agentic AI Actually Works

Despite cautionary notes, agentic AI is delivering genuine value. McKinsey reports organisations seeing 40% increases in order intake and doubled prospecting efforts through agent-powered sales. Contract cycle times are being cut by up to 50%[27]

The highest-traction use cases cluster around:

  • IT operations and service desk (ticket triage, troubleshooting, routine maintenance)
  • Knowledge management (synthesising information, creating reports, maintaining organisational memory)
  • Customer service (agent-assist technologies supporting frontline staff)[28], and
  • Financial operations (Forrester predicts one-third of B2B transactions will involve autonomous agents managing invoicing and reconciliation by year’s end)[29]

A word of caution from IDC: in Asia-Pacific, 45% of AI use cases are expected to fail ROI targets due to unclear gains and poor data foundations[30]. High-performing organisations aren’t treating agents as productivity add-ons they’re redesigning workflows with agent-first thinking, establishing clear success metrics, and building capability for continuous improvement.

The Delightfully Weird Edge

Now for the part I genuinely enjoy is possibilities that make this technology exciting rather than just useful. 

AI agents have already autonomously written a 100,000-word novel using teams of specialised agents. The World Ethical Data Foundation predicts 2026 will see at least one small business revealed to be completely run by AI from owner/director to marketing and accounting, raising unresolved questions about liability and governance when software makes all operational decisions[31]

And yes, the Wall Street Journal’s vending machine experiment where staff manipulated an AI into giving away a PlayStation 5 (among a plethora of other goodies) serves as both cautionary tale and reminder that these systems remain delightfully, frustratingly, human in their fallibility[33].

What Should You Actually Do?

If you’re responsible for enterprise technology strategy, here’s my distillation: 

Start with governance, not glamour. Before deploying agents, ensure you have frameworks to manage them. If you operate in the EU, work backwards from August 2026. The organisations winning are those treating governance as an enabler, not a constraint. 

Fix your data foundations. Agents are only as intelligent as the data they access. If your information architecture is a mess of silos, fix that first. Context-aware AI requires context-ready data. 

Think processes, not features. Successful organisations are redesigning workflows with agent-first thinking, not bolting agents onto existing processes. 

Invest in skills development. Your people need to understand how to work alongside agents, supervise them effectively, and recognise when something’s wrong. AI will require everyone to learn management skills: delegating with clear language, building trust, knowing when AI can’t be trusted yet. 

Build for sovereignty and portability. Data localisation requirements are tightening globally. Map your digital supply chains and build modular, provider-agnostic AI stacks that adapt as regulations evolve.

How Insentra Can Help

Look, I’m not going to hit you with a hard sell. But if you’re reading this thinking, “Cool trends, but how do I actually implement any of this without my IT team staging a revolt?”—that’s literally what we do at Insentra. 

The defining question of 2026 isn’t whether agentic AI works, it clearly does, in the right contexts. The question is whether organisations can mature their governance, infrastructure, and skills quickly enough to capture value responsibly. That’s where we come in. 

Whether you’re navigating AI governance frameworks, wrestling with information architecture to make your data agent-ready, figuring out what “good” looks like in the Microsoft 365 ecosystem, or simply trying to separate genuine agentic capability from vendor hype we’ve been there. Multiple times. With the battle scars and PowerShell scripts to prove it. 

For organisations ready to build practical AI capability fast, our Generative AI Sprint Series offers a structured path from foundations to advanced implementation—covering prompt engineering, custom GPTs, and agentic thinking across two focused sprints. When you’re ready to turn proven use cases into working products, our Agentic AI Sprint delivers a production-ready solution in just 10 weeks, fully guided from idea to deployment. 

We help organisations move from “this is overwhelming” to “we’ve actually got this” by focusing on three things: technical expertise that doesn’t require a decoder ring, real-world experience from hundreds o`f transformations, and a genuine commitment to reducing complexity. 

Ready to take the wheel? Let’s have a conversation about where you are, where you want to be, and how to get there without the chaos. Contact our team we’re genuinely happy to help you figure out your next move. 

Dan Kregor | Insentra 

Making enterprise tech transformations slightly less terrifying since… well, for quite a while now. 

Coming up next: AI Governance Will Stop Being Optional, the trend that’s about to make your compliance team very busy indeed.

Sources

1. Gartner, “Gartner Predicts 40% of Enterprise Apps Will Feature Task-Specific AI Agents by 2026” (2025). https://www.gartner.com/en/newsroom/press-releases/2025-05-19-gartner-predicts-40-percent-of-enterprise-apps-will-feature-task-specific-ai-agents-by-2026 

2. Deloitte, “Technology, Media & Telecommunications Predictions 2026” (2025). https://www.deloitte.com/global/en/about/press-room/deloitte-2026-technology-media-telecommunications-predictions.html 

3. IDC, “Asia-Pacific AI Spending and Economic Impact Forecast” (2025). https://www.idc.com/getdoc.jsp?containerId=prAP52947425 

4. Gartner, “AI Agents Will Transform IT Infrastructure and Operations” (December 2025). https://www.gartner.com/en/documents/5941968 

5. DataBricks, “7 Emerging Trends in Agentic AI for 2026” (2025). https://www.databricks.com/blog/agentic-ai-trends-2026 

6. McKinsey & Company, “The State of AI in 2025” (March 2025). https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai 

7. Deloitte, “Agentic AI Strategy: From Pilots to Production” (2025). https://www2.deloitte.com/us/en/insights/focus/tech-trends/2026/agentic-ai-enterprise-strategy.html 

8. IDC, “Asia-Pacific AI Market Analysis” (2025). https://www.idc.com/promo/apj-ai-market 

9. Cisco, “AI Readiness Index: Singapore Report” (2025). https://www.cisco.com/c/dam/m/en_sg/solutions/ai/ai-readiness-index.pdf 

10. Forrester, “European AI Adoption Lags Behind US” (2025). https://www.forrester.com/report/predictions-2026-artificial-intelligence 

11. National AI Centre, “Australian SME AI Adoption Report” (2025). https://www.csiro.au/en/work-with-us/industries/technology/national-ai-centre 

12. MIT Technology Review, “DeepSeek’s V3 and the Changing Economics of AI” (2025). https://www.technologyreview.com/2025/01/27/deepseek-ai-economics 

13. Gartner, “Why 40% of Agentic AI Projects Will Fail” (2025). https://www.gartner.com/en/articles/agentic-ai-project-failures 

14. Forrester, “Predictions 2026: Artificial Intelligence” (2025). https://www.forrester.com/report/predictions-2026-artificial-intelligence 

15. Microsoft, “Microsoft Agent 365: The Control Plane for AI Agents” (November 2025). https://www.microsoft.com/en-us/microsoft-365/blog/2025/11/18/microsoft-agent-365-the-control-plane-for-ai-agents/ 

16. Microsoft, “Copilot Studio: Powering Agentic Business Transformation” (2025). https://www.microsoft.com/en-us/microsoft-copilot/blog/copilot-studio/ 

17. Forrester, “Predictions 2026: Enterprise Software” (2025). https://www.forrester.com/blogs/predictions-2026-ai-agents-changing-business-models-and-workplace-culture-impact-enterprise-software/ 

18. McKinsey, “Enterprise CxO Agentic AI Survey” (July 2025). https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/agentic-ai-survey 

19. Gartner, “AI Agent Governance Gaps Report” (2025). https://www.gartner.com/en/documents/ai-governance-gaps 

20. CIO Dive, “5 AI Predictions That Will Shape 2026” (December 2025). https://www.ciodive.com/news/ai-predictions-2026-agentic-governance/ 

21. Gartner, “Top 10 Strategic Predictions for 2026 and Beyond” (2025). https://www.gartner.com/en/articles/gartner-top-10-strategic-predictions-for-2026-and-beyond 

22. European Commission, “EU AI Act Implementation Timeline” (2025). https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai 

23. UK Government, “AI Regulation: A Pro-Innovation Approach” (2025). https://www.gov.uk/government/publications/ai-regulation-a-pro-innovation-approach 

24. Cyber Security Agency of Singapore, “Agentic AI Security Guidelines” (2025). https://www.csa.gov.sg/Tips-Resource/publications/agentic-ai-guidelines 

25. Australian Government, “National AI Strategy” (2025). https://www.industry.gov.au/science-technology-and-innovation/technology/national-ai-strategy 

26. IBM, “Global AI Sovereignty Survey” (2025). https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/ai-sovereignty 

27. McKinsey, “Seizing the Agentic AI Advantage” (2025). https://www.mckinsey.com/capabilities/quantumblack/our-insights/seizing-the-agentic-ai-advantage 

28. Gartner, “Customer Service AI Agent Adoption” (2025). https://www.gartner.com/en/customer-service-support/trends/customer-service-ai 

29. Forrester, “The Shift From AI Hype to Hard Business Outcomes” (2025). https://www.forrester.com/predictions/2026/b2b-payments-agentic-ai 

30. IDC, “Asia-Pacific AI Use Case ROI Analysis” (2025). https://www.idc.com/getdoc.jsp?containerId=prAP52947425 

31. World Ethical Data Foundation, “AI-Run Businesses Prediction” (2025). https://www.worldethicaldata.org/reports/ai-business-operations-2026 

32. IBM, “Future of Agentic AI Infrastructure” (2025). https://www.ibm.com/think/topics/agentic-ai 

33. Wall Street Journal, “The Claude Vending Machine Experiment” (2025). https://www.wsj.com/tech/ai/claude-vending-machine-experiment 

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