Microsoft has struck a major deal with the U.S. General Services Administration (GSA) to provide millions of federal employees with free access to Copilot AI. The program includes one year of Microsoft 365 Copilot for agencies with the secure G5 licence, projected to save taxpayers $3.1 billion in the first year and over $6 billion within three years.

The initiative is part of the federal AI Action Plan, designed to modernize operations, automate tasks, and improve services to citizens. Additional benefits include major Azure discounts and the removal of data transfer charges, easing technology transitions across agencies.

Security has been a key concern. Microsoft’s cloud offerings hold FedRAMP High authorization, while Copilot awaits full approval but has provisional certification from the Department of Defense. Security is reinforced with Microsoft Sentinel and Entra ID as part of a “zero trust” framework.

Microsoft is also committing $20 million to training programs and support. GSA officials described the deal as a “paradigm shift” in procurement. Satya Nadella, Microsoft’s CEO, said the agreement will reduce costs, enhance security, and transform the work of millions of federal staff.