There is no way to do this from within your source file, since the et~al. string is hard-coded into the agsm.bst file itself. But it's not too hard to make a modified copy of the .bst file to do what you want.
First locate the original agsm.bst file. You can find the exact path for your system by using kpsewhich agsm.bst from the command line. On a current TeXLive system it is in:
/usr/local/texlive/2017/texmf-dist/bibtex/bst/harvard/agsm.bst
Make a copy of this file, and call it e.g. agsm-italic-etal.bst. Put this in your local texmf folder: ...texmf/bibtex/bst/ or simply place it in the same folder as your source document if you only need this style for that document.
Now in the copied .bst file, search for et~al. and replace it with \emph{et~al.}. There should be five occurrences of it. Save your changes and in your source document use
\bibliographystyle{agsm-italic-etal}
\documentclassand ending with\end{document}. – Bobyandbob Jul 22 '17 at 09:51