Millions of U.S. federal employees will soon have free access to Microsoft’s Copilot AI under a landmark partnership with the General Services Administration (GSA). The agreement grants agencies with the secure G5 licence one year of Microsoft 365 Copilot, expected to save taxpayers $3.1 billion in the first year and more than $6 billion over three years.

The program is part of the government’s AI Action Plan to modernize operations, automate tasks, and enhance citizen-facing services. The deal also includes Azure discounts and the removal of data transfer charges, helping agencies adopt new technologies.

Security remains critical. Microsoft cloud services already hold FedRAMP High authorization, while Copilot is pending final certification but has provisional clearance from the Department of Defense. Additional services like Microsoft Sentinel and Entra ID reinforce the “zero trust” security approach.

Microsoft will also spend $20 million on training initiatives to encourage adoption. GSA officials called the deal a “paradigm shift” in procurement. Satya Nadella, Microsoft’s CEO, said the partnership will save costs, improve security, and transform daily work for millions of public servants.