Revolutionizing software engineering with AI

PALO IT collaborated with HCF, Australia’s largest not-for-profit health fund, to deploy a cutting-edge AI engineering methodology to its already advanced technology teams. The move reflects the fund’s long-term commitment to leading in digital health, and to delivering better outcomes for members.

The initiative was centered on PALO IT's groundbreaking Gen-e2™ (Generative AI Enhanced Engineering) methodology, an approach that represents a paradigm shift in enterprise software development. Unlike most methods that merely bolt AI tools onto existing processes, Gen-e2™ reimagines the entire development lifecycle to become AI-first rather than just being AI-augmented. This methodology is powered by GitHub Copilot. 

This methodology elevates AI from a simple coding assistant to an intelligent agent across all phases of a project. It transforms the linear Software Development Life Cycle (SDLC) into a more streamlined Product Development Life Cycle (PDLC), where GitHub Copilot generates 95% of code, documentation, architecture diagrams, infrastructure as code, etc. fundamentally delivering the entire product, while increasing quality across all aspects.  

The first pilot project selected by HCF was a new innovation initiative designed to boost Australians' activity levels through social interaction, ultimately improving  health. Active Locals is a mobile app that helps people find groups suited to their interests and fitness levels, with a strong focus on building community and fostering a sense of belonging. 

Reflecting on the app’s delivery, HCF’s Product Lead for Innovation, Liam Gilligan, said, “Building Active Locals using the Gen-e2 approach allowed us to deliver more, faster and with half the team. It’s transformed our view on what efficient, high-quality product delivery can look like.”

PALO IT successfully delivered Active Locals to market in 4 months. The project was completed with an engineering team half the size of what would have been required if delivered in a traditional agile delivery approach, while delivering more features than initially scoped. These results represent 86% productivity gains highlighting the effectiveness of early adoption of the Gen-e2 methodology powered by GitHub Copilot. 

Burn up chart of pilot project. Gen-e2 actuals vs. forecast with traditional methods

Key pilot project metrics: 86% overall productivity gain

As Gen-e2 represents a drastic shift from traditional ways of delivering software, it required significant change. While HCF teams were already mature from an engineering perspective, they demonstrated an impressive capacity to embrace these new ways of working.

Setting the Standard for AI Innovation

HCF has become one of the first organizations globally to deploy such advanced AI-first software engineering methodology with GitHub Copilot. This initiative reinforces Australia's commitment to being a leader in AI adoption worldwide, and sets a powerful example for others looking to embrace the future of technology.

“By embracing an AI first engineering approach, we’re not just improving our development speed – we’re fundamentally rethinking how we build and scale digital experiences."
– Tom ROBINSON, Head of Innovation, HCF

“Strategic partners like PALO IT are instrumental to how GitHub brings the power of our Copilot-powered platform to life. Today’s businesses need to eliminate backlogs, ship faster, and innovate with purpose. With deep expertise in AI-driven software engineering, PALO IT is helping customers do just that, and it’s incredible to see the impact firsthand with HCF."
– Ross FENTON, Senior Director, SMB, GitHub

Mi-3, HCF and PALO IT launch fitness meet-up app with AI-driven methodology

IT Brief, HCF & PALO IT launch app with 86% productivity boost using AI

HCF, Australia’s largest not-for-profit health fund protecting Australians since 1932, covers over 2 million members with health and life insurance, travel, pet, home and car insurance. HCF has been awarded Outstanding Value Health Insurance by Canstar nine years in a row from 2016-2024. On average over the last ten years, HCF has paid out more cents in every dollar in premiums to members as benefits than the industry average.