Millions of US federal workers are trying to get a new AI assistant on their devices for free in the form of Microsoft Copilot. The move is part of a transaction between Microsoft and the US General Services Agency (GSA), which is expected to save taxpayers $3.1 billion in their first year.
The heart of this huge new contract is Microsoft 365 co-pilot all year round using high-security G5 licenses to incur additional costs for government workers. This is the driving force behind bringing the latest AI tools to civil servants, aiming to improve the way government operates.
Microsoft pushes the US government into the AI era
The agreement aims to place the US government at the forefront of AI adoption. This is a direct response to the administration’s AI action plan, designed to bring the power of modern artificial intelligence to everything from managing citizen inquiries to analyzing complex data.
“OneGov represents a paradigm shift in federal procurement that leads to massive cost savings achieved by leveraging the purchasing power of the entire federal government,” explained FAS Commissioner Josh Grundbaum.
The free Copilot offer is for users of the Microsoft 365 G5 plan and is the premium tier of the department that handles sensitive information and requires the most stringent security protocols. But the benefits expand even further, and the agreement helps institutions use AI to automate their daily tasks and frees people to focus on their most important tasks.
The agreement also makes it cheaper and easier for different sectors to modernize their technology. Tackle major headaches that often reduce interagency collaboration by offering significant discounts on Azure Cloud Services and removing data transfer fees.
Security is not an afterthought
Of course, providing AI access to government systems raises immediate security questions. The deal addresses this head on, and Microsoft emphasizes that its core cloud and AI services have already passed FedRamp High Security Authorization, a key standard for processing sensitive government data.
Copilot itself will soon be expected to receive a full Fedramp High certification, but it has already been given a temporary green light from the Department of Defense. The package includes advanced security tools such as Microsoft Sentinel and Entra ID, supporting government “Zero Trust” security goals.
GSA assistant manager Stephen Ehikian has strongly encouraged government agencies to utilize new tools.
“GSA is proud to partner with technology companies like Microsoft to promote AI adoption across the federal government, a key priority for the Trump administration,” Ehikian said. “We are urging federal partners to leverage these contracts and provide government workers with transformative AI tools that streamline operations, reduce costs and enhance outcomes.”
Help government agencies use AI effectively
Microsoft is also spending money to make sure the technology is actually used effectively. The company has committed an additional $20 million to support and training, including workshops to help institutions find other areas to make the most of their new tools and reduce waste.
All in all, it is estimated that the package will deliver more than $6 billion in value over the next three years.
“With this new agreement with the US General Services Agency, including the non-cost Microsoft 365 Copilot Offer, federal agencies will use AI and digital technologies to improve civic services, enhance security and help save more than $3 billion in taxpayers in their first year alone.”
For millions of people working within the US government, this agreement with Microsoft means that AI-powered assistants are supposed to change their daily work.
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