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Strategic Insights from Capgemini: Navigating the Rise of Agentic AI
Opportunities, considerations and next steps for Australian public sector agencies to harness the agentic advantage.
Capgemini shares insights on the rise of Agentic AI, a new paradigm emerging as government agencies across Australia advance their digital transformations, marked by AI-powered systems that can reason, plan, and act autonomously to support mission-critical outcomes.
This paradigm is already changing how we design, build, deliver and operate software and technology platforms – and it will continue to shape and underpin the delivery of citizen-based and internal public sector services into the future.
This evolution mirrors the cloud transformation of the mid-2000s. The key difference: it’s moving much faster. More than simply a trend or an option for agencies to consider, agentic is fast becoming foundational to future-ready public service delivery.
With 2025 named the year of the agent, and research indicating that 82% of organisations plan to integrate AI agents within 1-3 years (yet more than half of these feeling unprepared for the change ahead), the question is no longer if agentic capabilities will be adopted in the Australian Public Service, but how fast, how well and how wisely.
Humans + agents = hyperscaled capability and output
Explained in simple terms, agents work alongside – and are overseen by – an organisation’s skilled humans. This hybrid human + agentic squad allows an organisation to vastly hyperscale its capability and output.
Agentic platforms extend beyond traditional AI and automation. These systems don’t wait for prompts or scripts. Instead, they identify tasks, determine optimal solutions and act – often coordinating with other systems or agents – to execute business goals. This evolution from reactive to proactive technology opens doors to improved efficiency, scalability and citizen service.
The Australian public sector state of play: from exploration to enterprise readiness
Australian government agencies are increasingly recognising the potential of agentic AI, and many have progressed rapidly from proof-of-concept explorations in 2024 to real-world, enterprise-scale implementations and platform deployment in 2025.
Conversations have moved quickly from, “What is this, and what should I be doing with it?” to, “How can this help me solve the problems I face today?”
Whether it’s automating policy research, streamlining grants management, augmenting capability or creating significant cost efficiencies in the software delivery lifecycle (SDLC), agentic systems are already starting to demonstrate tangible benefits for agencies.
With initiatives such as the AI in Government Taskforce now firmly in place to help ensure the safe and responsible integration of AI technologies within public services, agencies can look to maximise the benefits of agentic AI while addressing associated risks and challenges in parallel.
If the agentic programs that are in flight today continue at their current pace, Capgemini expects to see endorsed and fully operational agentic platforms in the Australian public sector before the end of 2025.
Why agents – and why now? Real-world benefits for the Australian public sector
The Australian public sector faces numerous challenges to its ability to deliver optimum services to citizens – from the limitations imposed by legacy systems, siloed data and manual processes to the reality of under-pressure teams increasingly expected to do more with less while also continuing to keep pace with constant change.
Agentic AI enables agencies to shift from fragmented, reactive delivery to continuous, contextual and anticipatory services – streamlining operations, optimising costs, augmenting capability and addressing needs before they arise.
Agentic platforms provide an immediate opportunity for organisations to deliver cost efficiencies at scale, improve decision-making with real-time, data-driven insights, accelerate program delivery and responsiveness and personalise citizen services and improve trust.
To give just one example, a large Australian agency has already seen a 75% reduction in the time taken to process specific requests using agentic methods.
Key agentic use cases and benefits include:
- Alleviation of cost and efficiency pressures:
For example, reducing overhead in software development and delivery cycles to free up investment in innovation. - Service scalability:
Addressing resourcing constraints and expanding 24/7 support. - Control:
Capturing and systematising institutional knowledge and IP, creating internal enablement and giving agencies greater control of their information, processes and relationships.
Unique considerations and challenges for public sector agentic adoption
Despite momentum, there are specific considerations and challenges the public sector needs to consider as it integrates agentic AI – in particular to ensure a constant focus on:
- Sovereignty:
Ensuring that it is in-country and locally controlled. - Security:
Ensuring it meets the public sector’s strict security requirements. - Consistency and compliance:
Ensuring consistency and compliance of information across the public service. - System modernisation:
Unlocking budget tied up in outdated technology to enable future-ready and adaptive solutions. - Change governance:
Ensuring consistency and traceability as agents evolve.
Final thought
The landscape of AI agents is rapidly evolving, and agentic platforms are redefining what’s possible in the Australian public service – at speed. As these tools grow smarter and more autonomous, the greatest risk isn’t in adopting them; it’s in waiting too long to start.
Of course, alongside this potential for tremendous upside, there is a need for caution, contextual awareness and oversight. Addressing the public sector’s unique challenges and ensuring trust in these technologies will be critical for the successful integration of agentic AI in the public sector.
Source: Capgemini
