Millions of US federal government workers are about to get a new AI assistant on their devices for free in the form of Microsoft Copilot. The move is part of a deal between Microsoft and the US General Services Administration (GSA) that’s also expected to save taxpayers $3.1 billion in its first year.
The centrepiece of this huge new agreement is a full year of Microsoft 365 Copilot at no extra cost for government workers using the high-security G5 licence. This is a push to get the latest AI tools into the hands of public servants quickly and safely, aiming to improve how the government operates.
Microsoft pushes the US government into the AI era
This deal aims to place the US government at the forefront of AI adoption. It’s a direct response to the administration’s AI Action Plan, designed to bring the power of modern artificial intelligence to everything from managing citizen enquiries to analysing complex data.
“OneGov represents a paradigm shift in federal procurement that is leading to immense cost savings, achieved by leveraging the purchasing power of the entire federal government,” explained FAS Commissioner Josh Gruenbaum.
The free Copilot offer is specifically for users on the Microsoft 365 G5 plan, the premium tier for departments that handle sensitive information and require the tightest security protocols. But the benefits extend further, with the deal helping agencies to use AI for automating routine tasks, freeing up people to focus on the work that matters most.
The agreement also makes it cheaper and easier for different departments to modernise their technology. By offering big discounts on Azure cloud services and getting rid of data transfer fees, it tackles a major headache that has often slowed down collaboration between agencies.
Security is not an afterthought
Of course, giving AI access to government systems raises immediate security questions. The deal addresses this head-on, with Microsoft emphasising that its core cloud and AI services have already passed FedRAMP High security authorisation, a critical standard for handling sensitive government data.
While the full FedRAMP High certification for Copilot itself is expected soon, it has already been given a provisional green light by the Department of Defense. The package also includes advanced security tools like Microsoft Sentinel and Entra ID to support the government’s “zero trust” security goal.
GSA Deputy Administrator Stephen Ehikian strongly encouraged government agencies to take advantage of the new tools.
“GSA is proud to partner with technology companies, like Microsoft, to advance AI adoption across the federal government, a key priority of the Trump Administration,” said Ehikian. “We urge our federal partners to leverage these agreements, providing government workers with transformative AI tools that streamline operations, cut costs, and enhance results.”
Helping government agencies to use AI effectively
Microsoft is also putting money into making sure the technology is actually used effectively. The company has committed an extra $20 million for support and training, including workshops to help agencies get the most out of the new tools and find other areas to reduce waste.
All told, the package is estimated to deliver more than $6 billion in value over the next three years.
“With this new agreement with the US General Services Administration, including a no-cost Microsoft 365 Copilot offer, we will 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,” commented Satya Nadella, Chairman and CEO of Microsoft.
For the millions of people working within the US government, this agreement with Microsoft means that an AI-powered assistant is set to change their daily work.
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