Microsoft’s Free AI Assistant Offer to US Federal Workers: A $3.1 Billion Savings Plan for the Government
The United States federal government is poised to provide millions of its workers with a new artificial intelligence (AI) assistant, Microsoft Copilot, at no additional cost on their devices. This initiative is part of a significant agreement between Microsoft and the General Services Administration (GSA), which is projected to save taxpayers $3.1 billion in the first year.
Central to this sweeping deal is a complimentary one-year subscription to Microsoft 365 Copilot for federal employees utilizing the high-security G5 license. The goal is to swiftly and securely disseminate the latest AI technology among public servants, with the aim of enhancing government operations.
This agreement positions the US government at the forefront of AI adoption, reflecting a proactive response to the administration’s AI Action Plan. The strategic objective is to harness the power of modern artificial intelligence in applications ranging from managing citizen inquiries to analyzing complex data.
As Commissioner of the Federal Acquisition Service (FAS), Josh Gruenbaum elaborated, “OneGov represents a paradigm shift in federal procurement that is delivering immense cost savings through leveraging the collective purchasing power of the entire federal government.”
The free Copilot offer is exclusive to users on the Microsoft 365 G5 plan, the premium tier designed for departments handling sensitive information and implementing stringent security measures. Beyond this, the agreement empowers agencies to automate routine tasks, enabling personnel to concentrate on critical assignments.
The deal also simplifies and reduces costs for various departments when modernizing their technology. By offering substantial discounts on Azure cloud services and eliminating data transfer fees, it alleviates a persistent obstacle often hindering collaboration between agencies.
Clearly, granting AI access to government systems raises immediate security concerns. The agreement addresses these concerns directly, with Microsoft emphasizing that its core cloud and AI services have already secured FedRAMP High security authorization, a crucial standard for handling sensitive government data.
Although the full FedRAMP High certification for Copilot is still pending, it has already received provisional approval from 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 objective.
GSA Deputy Administrator Stephen Ehikian encouraged government agencies to capitalize on these new tools, stating, “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.”
Microsoft has pledged an additional $20 million for support and training, including workshops to help agencies maximize the potential of these new tools and identify other areas to minimize waste. In total, the package is estimated to yield over $6 billion in value over the next three years.
Satya Nadella, Chairman and CEO of Microsoft, commented, “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.”
For over four decades, Microsoft has partnered with the U.S. Government to serve the American people. From modernizing IT infrastructure to advancing cybersecurity, the partnership has consistently been rooted in trust, innovation, and shared purpose.
Today, we are moving forward…
For the millions of individuals working within the US government, this agreement with Microsoft signifies that an AI-powered assistant is poised to transform their daily work experience.
