The US General Services Administration (GSA) has signed an agreement with Microsoft to provide federal agencies with expanded access to cloud and Artificial Intelligence tools.
The deal will make Microsoft 365 Copilot available at no cost for up to 12 months to millions of existing Microsoft G5 users. GSA said the arrangement supports its OneGov strategy and is expected to deliver US$3 billion in cost savings in the first year through a unified pricing model.
According to the agencies, the agreement is designed to support goals outlined in the America’s AI Action Plan. Federal departments will gain access to AI-enabled productivity tools, cloud services and security features already integrated into widely used Microsoft products.
The offering includes Microsoft 365 with Copilot for workflow automation and data analysis, AI agents that can be deployed for citizen services such as inquiries and case management and Azure cloud discounts with waived data egress fees to support modernization and collaboration.
Additional services include Dynamics 365 applications for operational efficiency and security platforms such as Entra ID and Sentinel to strengthen identity management and threat detection.
GSA said the agreement aims to improve federal operations and service delivery while advancing cybersecurity and cost efficiency. Microsoft said the partnership will provide agencies with technology to adopt AI at scale while maintaining compliance and security standards.
