Microsoft has partnered with the U.S. General Services Administration (GSA) to provide millions of U.S. federal workers with free access to Microsoft Copilot, the company’s AI assistant.
The agreement is projected to save taxpayers $3.1 billion in its first year. It centers on a one-year, no-cost license of Microsoft 365 Copilot for government workers using the secure G5 plan.
This plan, reserved for agencies that handle the nation’s most sensitive information, would reduce routine workloads and improve efficiency across departments.
Federal Acquisition Service Commissioner Josh Gruenbaum described the effort as “a paradigm shift.”
He stressed that pooling the purchasing power of the federal government allows for significant savings and broader access to cutting-edge technology.
Direct Benefits
Citizens stand to benefit from faster and more accurate services. Copilot can assist with tasks such as processing claims, drafting responses, and analyzing data.
For example, workers at the Social Security Administration could use Copilot to speed up benefit reviews.
Passport agencies could process applications more quickly and keep applicants updated in real time.
Consequently, employees will have more time to focus on complex cases that require personal attention.
Security
Introducing AI into government systems brings serious security concerns, which Microsoft and the GSA have addressed directly.
The company’s cloud and AI services already hold FedRAMP High authorization, the federal government’s top security certification for cloud systems.
Although Copilot itself is awaiting full FedRAMP High approval, the Department of Defense has already granted provisional authorization.
The package also includes Microsoft Sentinel and Entra ID. These tools strengthen defenses and support the government’s “zero trust” strategy, which verifies all users and requests by default.
Also read: Microsoft Brings OpenAI’s Latest Free GPT Model to Windows 11
Financial Savings
Beyond free Copilot access, the agreement reduces costs for Azure cloud services and eliminates data transfer fees.
These changes remove long-standing barriers that have slowed collaboration among federal agencies.
Altogether, the deal is expected to deliver more than $6 billion in value over the next three years.
Microsoft Chairman and CEO Satya Nadella said the agreement would “help federal agencies use AI and digital technologies to improve citizen services, strengthen security, and save taxpayers more than $3 billion in the first year alone.”
Effective Adoption
Technology only creates value when it is used well. To ensure adoption, Microsoft has committed $20 million to training and support.
The program will include workshops and resources to help workers apply AI to everyday tasks.
This investment aims to make Copilot a practical tool rather than a novelty. Employees will learn to use AI for drafting reports, comparing policies, and analyzing large data sets.
These skills will help agencies cut waste and focus on public service.
Partnership
Deputy Administrator Stephen Ehikian of the GSA emphasized the importance of the initiative.
He noted that the agency is proud to partner with Microsoft to advance federal AI adoption, which remains a top priority of the current administration.
Microsoft has worked with the U.S. government for more than four decades. This partnership has included efforts to modernize IT infrastructure and strengthen cybersecurity.
The new agreement builds on that foundation while moving federal agencies into the era of artificial intelligence.
