Under a landmark deal with the General Services Administration (GSA), millions of U.S. federal workers will gain free access to Microsoft Copilot AI. The agreement provides agencies using the secure G5 licence with a year of Microsoft 365 Copilot at no charge, a move expected to save taxpayers $3.1 billion in the first year and $6 billion over three years.

The initiative is part of the government’s AI Action Plan, aimed at modernizing public services, automating repetitive tasks, and boosting efficiency. Agencies will also receive deep Azure discounts and waived data transfer fees, making technology upgrades and collaboration more accessible.

Security is a priority: Microsoft cloud and AI services already have FedRAMP High authorization, while Copilot is pending final certification but has provisional approval from the Department of Defense. Tools like Microsoft Sentinel and Entra ID further support the federal “zero trust” strategy.

To ensure effective adoption, Microsoft is committing $20 million for training and workshops. GSA officials called the deal a “paradigm shift” in procurement. Microsoft CEO Satya Nadella said the partnership will cut costs, enhance security, and change the way millions of government employees work.