A groundbreaking deal between Microsoft and the General Services Administration (GSA) will grant millions of federal employees free access to Microsoft Copilot AI. Agencies with the secure G5 licence will receive one year of Microsoft 365 Copilot without cost, projected to save $3.1 billion in the first year and $6 billion over three years.
The initiative is a core element of the AI Action Plan, aiming to automate government processes, modernize operations, and improve public services. Agencies will also see reduced technology costs through Azure discounts and waived data transfer fees.
Security is at the forefront of the rollout. Microsoft’s cloud and AI tools already meet FedRAMP High standards. Copilot itself is awaiting final certification but holds provisional approval from the Department of Defense. Supporting systems like Microsoft Sentinel and Entra ID further advance the government’s “zero trust” approach.
To ensure broad adoption, Microsoft will invest $20 million in training and support workshops. GSA officials said the agreement represents a “paradigm shift” in procurement, while Satya Nadella noted the deal will transform workflows, lower costs, and improve security for government staff.
