Microsoft's AI, Copilot, set for deployment among the American populace – projected savings of $3 billion upon implementation
Microsoft and the U.S. General Services Administration (GSA) have jointly announced an agreement that will provide cloud services to government agencies at no cost or at a discount. This partnership is part of a larger effort to modernize government systems, improve citizen services, and advance technology transformation goals.
Under the terms of the agreement, federal agencies will have access to a unique version of the Microsoft 365 Copilot suite that's only available to the federal government. This suite includes AI services such as Microsoft 365 Copilot for up to 12 months at no cost. Discounted pricing will also be available for Microsoft 365, Azure Cloud Services, Dynamics 365, and cybersecurity and monitoring tools for up to 36 months.
Azure discounts will be offered to agencies and data egress fees will be waived entirely. These benefits are designed to help federal agencies reduce costs and improve operational efficiency. GSA Deputy Administrator Stephen Ehikian urged federal partners to leverage the agreement with Microsoft, providing government workers with AI tools for operational efficiency, cost reduction, and improved results.
Microsoft Chairman and CEO Satya Nadella announced the new agreement, emphasizing Microsoft's commitment to empowering public servants with tools for effective and secure service delivery. He stated that the agreement is expected to save taxpayers over $3 billion in the first year.
Chris Barry, Corporate Vice President of US Public Sector Industries at Microsoft, expressed commitment to being the government's essential partner in delivering AI tools for public good. He believes that this partnership will help government agencies adopt AI tools, leading to improved services and outcomes for citizens.
The Federal Acquisition Service (FAS) Commissioner Josh Gruenbaum stated that the agreement with Microsoft represents a paradigm shift in federal procurement, leading to immense cost savings. He encouraged federal agencies to take advantage of the offers provided by Microsoft throughout the government, and to opt in to any or all of the offers provided by Microsoft through September 2026, giving them a year to assess which tools should be implemented.
Several government employees and members of Microsoft's staff have commented on the agreement. They believe that this partnership will help modernize government systems, improve citizen services, and advance technology transformation goals.
The name of the U.S. government official who announced the partnership between Microsoft and the U.S. General Services Administration is not provided in the available search results. However, this partnership is expected to have a significant impact on the way government agencies operate and deliver services to citizens.
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