Millions of U.S. government workers will receive free access to Microsoft Copilot AI following a historic deal with the General Services Administration (GSA). The plan provides agencies with the secure G5 licence one year of Microsoft 365 Copilot, with projected taxpayer savings of $3.1 billion in the first year and more than $6 billion over three years.
The agreement is a central piece of the government’s AI Action Plan, focused on modernizing systems, automating processes, and enhancing citizen services. Agencies also gain discounts on Azure and waived data transfer fees, encouraging upgrades and interagency collaboration.
Security is a top priority. Microsoft’s cloud and AI services already hold FedRAMP High approval. Copilot, while awaiting final certification, has received provisional authorization from the Department of Defense. Supporting tools like Microsoft Sentinel and Entra ID further embed “zero trust” principles.
To ensure adoption, Microsoft is investing $20 million in training programs and workshops. GSA officials called the deal a “paradigm shift” in procurement. CEO Satya Nadella said the move will reduce costs, improve security, and transform daily workflows for federal employees.
