Technology leaders expect 2026 to mark a shift towards more autonomous artificial intelligence systems in Australia and New Zealand, alongside tighter regulatory pressure that forces closer alignment between IT and security and renewed focus on digital sovereignty.

Executives from ManageEngine and SUSE say the coming year will test how well organisations balance rapid AI adoption, operational resilience and emerging compliance demands, especially for small and mid-sized businesses.

Autonomous AI

Vinayak Sreedhar, Country Manager A/NZ at ManageEngine, said organisations are starting to move beyond experimental AI deployments. He said they are embedding systems that carry out tasks with less human intervention in core IT and business workflows.

“We’re beginning to see AI move beyond passive support roles to taking on increasingly active, autonomous functions in IT and business operations. 2026 will see this trend grow as next-generation AI systems, those able to reason, plan, and execute tasks, will drive innovation and streamline operations for businesses across the region. As these capabilities become more widespread, it will be critical to ensure that access to these tools is not limited to larger enterprise organisations. Small and mid-sized businesses (SMBs) form the economic backbone of Australia and as such, equitable access to the same AI-driven efficiencies will be essential for national productivity, resilience, and competitiveness,” said Sreedhar.

Vendors and enterprises in Australia and New Zealand have spent the past two years piloting large language models, automation platforms and AI assistants across IT support and back-office functions. Analysts expect those pilots to move into broader rollout as tools mature and governance frameworks evolve.

SMB innovation

Sreedhar said small and mid-sized organisations increasingly treat AI as a core strategic tool rather than a bolt-on feature. He said their use spans internal efficiency and customer-facing services.

“Small and mid-sized businesses are no longer just adopters of technology. They’re becoming true drivers of innovation. We’ll see more SMBs using AI tools to deliver the same quality of operational efficiency as much larger organisations while maintaining the level of personalised customer experience SMBs are known for. The challenge for 2026 will be bridging the gap in access. Ensuring smaller organisations have the right support, training, and affordable technology pathways to modernise securely,” said Sreedhar.

Industry groups and policymakers have raised similar concerns about a possible digital divide. Larger enterprises can fund in-house data science teams and tailored AI platforms. Smaller firms often rely on packaged tools and external partners, which raises questions around cost, data control and security.

Security convergence

The ManageEngine executive expects regulatory change to push IT and cybersecurity closer together in the region. He said data protection and resilience requirements will drive architectural consolidation and new operating models.

“2026 will see regulation drive a new wave of convergence across IT and security. As compliance frameworks tighten, particularly around data protection, resilience, and identity management, the traditional divide between IT operations and cybersecurity will continue to close. Organisations will consolidate tools and teams to improve visibility, strengthen accountability, and simplify processes. The result will be leaner, better-connected digital environments where governance and security are built into every layer of operations rather than treated as separate functions,” said Sreedhar.

Governments across Asia-Pacific have introduced or updated cyber, privacy and critical infrastructure rules. Boards now face more explicit expectations on incident reporting, risk management and uptime. That trend is prompting more enterprises to integrate security engineering with IT operations and software delivery.

Digital sovereignty

Peter Lees, Head of Solution Architecture in Asia-Pacific at SUSE, said organisations across the region now track developments in European regulation. He said they consider how digital sovereignty rules might influence their own IT choices.

“Resilience begins with freedom of choice. The rise of digital sovereignty regulations, particularly with the precedent that is emerging from the EU, means APAC businesses must carefully and proactively consider how to maintain control over their data and technology platforms from the outset, instead of reacting to being locked in when it’s too late. On top of the ethical considerations, there is a pragmatic one too: of governance and cost control. Choosing flexible, open options prevents organisations from being locked into enormous migration costs or becoming vulnerable to huge price increases from a single vendor.”

Cloud contracts, data residency and multi-vendor strategies have become board-level issues. Organisations weigh the benefits of hyperscale platforms against concerns about concentration risk, pricing leverage and evolving localisation requirements.

AI infrastructure

Lees said AI is changing how infrastructure is managed and monitored. He said that change is driving interest in systems that use natural language interfaces and automation under human oversight.

“AI-assisted infrastructure is rapidly becoming a reality, managing complexity through simple, natural language commands. Enterprises should aim to strategically build infrastructure systems that are context-aware, secure by design, and integrated with intelligent management. Crucially, AI tools must be adaptive and aligned with business goals, ensuring that natural language, policy, and automation work together securely under human supervision. In this rapidly-changing sector where new developments can make dramatic changes in a short period, choosing the right open source approach allows organisations to maintain platform flexibility, ensuring that infrastructure is agile enough to adopt the best, most trustworthy innovations while upholding strict governance, privacy, and security,” said Lees.

Vendors in Asia-Pacific have launched platforms that embed AI into observability, configuration and policy enforcement. CIOs are testing those approaches while they weigh skills shortages and the need for predictable governance frameworks.

Regional spending forecasts suggest that AI, security modernisation and data infrastructure will remain priority areas for organisations in 2026, even as they face macroeconomic uncertainty and higher capital costs.