Microsoft agreed a deal with the US General Services Administration (GSA) to provide discounted access to Microsoft 365, Copilot, and Azure Cloud Services to accelerate AI adoption and digital transformation across federal agencies.

The GSA stated the deal, which also includes the tech giant’s cybersecurity tools, could save US government agencies up to $3.1 billion in the first year.

It includes free access to its generative AI chatbot, Microsoft 365 Copilot, for up to 12 months.

The discounts to government agencies extend to Microsoft Sentinel, Azure Monitoring, Entra ID Governance, and Dynamics 365, along with workshops for adoption, implementation and optimisation.

Federal agencies can opt-in to any or all of those offers through September 2026 with discounted pricing available for up to 36 months for certain products.

GSA stated the agencies benefit from a government wide unified pricing strategy which leverages the federal government’s purchasing power to reduce costs while fostering AI innovation.

Federal acquisition service commissioner Josh Gruenbaum stated GSA is accelerating access to AI for federal agencies and as part of a plan to deliver on US President Donald Trump’s AI action plan.

GSA announced similar AI-related arrangements last month with Amazon Web Services, OpenAI, Anthropic and Google.