Millions of U.S. government employees will soon gain access to Microsoft’s Copilot AI at no cost under a new deal with the General Services Administration (GSA). Agencies holding the secure G5 licence will receive one year of Microsoft 365 Copilot, a package estimated to save taxpayers $3.1 billion in year one and more than $6 billion over three years.

The initiative is part of the federal AI Action Plan, focused on modernizing government operations, automating workflows, and enhancing citizen-facing services. The agreement also brings Azure discounts and waived data transfer fees, helping agencies upgrade systems and collaborate more easily.

Security compliance is a major component. Microsoft’s cloud offerings already carry FedRAMP High certification. While Copilot awaits full approval, it has provisional clearance from the Department of Defense. Tools like Microsoft Sentinel and Entra ID reinforce the government’s “zero trust” security framework.

Microsoft will also allocate $20 million toward training programs and adoption support. GSA leaders praised the arrangement as a “paradigm shift” in procurement. CEO Satya Nadella said the deal will cut costs, improve security, and transform the daily work of millions of federal employees.