Microsoft's AI, dubbed Copilot, set to aid Americans - Estimated savings of $3 billion through AI implementation

Microsoft and the US General Services Administration (GSA) have announced a groundbreaking agreement that will see federal agencies gain access to a range of cloud services at no cost or at a discounted rate. The aim of the agreement is to help government agencies adopt Artificial Intelligence (AI) tools and modernize their systems, ultimately improving citizen services.

Chris Barry, Corporate Vice President of US Public Sector Industries at Microsoft, expressed his commitment to being a partner in delivering AI tools for the public good. He was joined by Microsoft Chairman and CEO Satya Nadella, who claimed the new agreement will help federal agencies save over $3 billion in the first year.

Under the terms of the agreement, federal agencies will have the option to access a unique version of the Microsoft 365 Copilot suite, only available to the federal government. This suite includes AI services such as Microsoft 365 Copilot at no cost for up to 12 months. There are no per-agent fees for AI agents as part of the agreement.

In addition to the Microsoft 365 Copilot suite, discounts will be available to federal agencies on Microsoft 365, Azure Cloud Services, Dynamics 365, and cybersecurity and monitoring tools. Azure discounts will be offered, and data egress fees will be waived entirely.

The Federal Acquisition Service (FAS) Commissioner Josh Gruenbaum stated that the GSA is accelerating AI access for federal agencies. He urged federal partners to leverage AI agreements for transformative tools. GSA Deputy Administrator Stephen Ehikian echoed this sentiment, encouraging federal agencies to take advantage of the offers available through September 2026.

The US government agencies that have committed to using Microsoft's AI services, either at no cost or with discounts, are secured through a contract with the General Services Administration (GSA). However, the specific named agencies benefiting without cost or with discounts are not detailed in the available information.

Several government employees and members of Microsoft's staff have commented on the agreement, with Nadella announcing the agreement on X (formerly Twitter), emphasizing the aim to modernize systems and improve citizen services.

The GSA is an independent agency of the US government that manages federal property and provides government agencies with contracting options. This agreement will provide federal agencies with access to Microsoft’s government cloud offerings under special terms, helping them to adopt AI tools and improve their operations.