In this Government Edge keynote, Matt Boon, Senior Research Director at ADAPT, revealed how public sector leaders are scaling AI and modernising cloud.

The inaugural ADAPT Government Edge Survey reveals that Australia’s public sector leaders are focused on building secure, connected, and workforce-enabled digital services.

This is aligned with the 2030 vision for simple, secure, and connected public services.

Six leadership pillars are shaping the government’s digital direction for 2025 and beyond: trust and transparency, digital capability uplift, use-case-led innovation, cyber and business resilience, collaboration, and workforce development.

Australia has risen one place to 23rd on the Global Innovation Index, signalling steady progress, yet the sector recognises that further collaboration between government and industry is vital to strengthening national innovation and sovereign capability.

Survey results show government agencies are prioritising AI strategy, cyber security, and cloud modernisation as they move from pilots to scaled implementation.

70% of CIOs plan to increase AI investment in the next year, dedicating around 4% of IT budgets, while multi-cloud migration and automation rank high among planned initiatives.

Key challenges persist, including funding constraints, skills shortages, and legacy technology, both technical and cultural.

Over half of respondents report moderate or severe gaps in cyber security and AI readiness, with Essential Eight maturity levels still concentrated at levels one and two.

Meanwhile, 61% of organisations are exploring or piloting generative AI, with strong interest but cautious adoption due to fragmented governance and limited funding.

Looking ahead, leaders identify secure cloud adoption, data as a strategic asset, and workforce capability as critical enablers of transformation.

AI is viewed as an opportunity to augment, not replace, the public workforce, freeing people for higher-value tasks.

Collaboration across departments remains essential to break down silos, align shared KPIs, and deliver seamless citizen services.

As agencies aim to strengthen trust, resilience, and accountability, the message is clear: progress depends on collective effort, pragmatic innovation, and sustained investment in people, technology, and partnerships.

 

Key takeaways:

  • AI and cloud modernisation are top priorities, with 70% of CIOs planning to increase AI investment and agencies moving from pilots to scaled implementation to improve efficiency and citizen outcomes.
  • Cyber security and workforce capability gaps persist, with over half of departments reporting below-ideal maturity in essential security measures and limited readiness to safely scale AI.
  • Collaboration and trust underpin transformation, as government leaders emphasise breaking down silos, building sovereign capability, and using innovation to deliver secure, connected, citizen-centred services.
Contributors
Matt Boon Senior Research Director at ADAPT
Matt Boon is the Senior Director for Strategic Research at ADAPT, responsible for directing and developing research content and positions. For over... More

Matt Boon is the Senior Director for Strategic Research at ADAPT, responsible for directing and developing research content and positions.

For over 30 years, Matt has worked in research and advisory, including senior leadership roles at Gartner as Principal Analyst, Research Director, and Managing Vice President, where his 18 year history included working with Dell, Microsoft, and many others.

Throughout his career, Matt has been a sought after and highly respected authority on the local and global IT landscape.​ He interacts with executives daily, bringing together groups of C-suite leaders to discuss and prepare for the challenges and opportunities they face.​
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At ADAPT, Matt hosts numerous industry-leading business and technology events which Matt chairs, including the yearly Security Edge conference, delivering unique market trends and white-papers, advising executives across the technology provider landscape to make informed IT decisions.​

When he is not working, Matt enjoys walking the many trails of the NSW Southern Highlands, travelling and listening to music. He is also partial to a good steak and nice glass of red wine.

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modernisation leadership transformation