The UK government has agreed a five-year contract with Microsoft, which will provide access to Microsoft’s AI-powered products and services for the Crown Commercial Service.

The agreement, which will come into effect on 1 November, will enable eligible public sector organisations, via their chosen procurement route, to pursue their digital transformation and innovation ambitions, through access to cost savings on Microsoft 265, the Azure cloud platform, Business Applications, and Microsoft 365 Copilot.

The UK government hopes the agreement will increase the speed of innovation across the UK public sector, enhance efficiency, improve cross-departmental collaboration, and deliver improved services for UK citizens.

“AI technologies present a unique opportunity to transform public services and fuel the UK’s economic growth,” Clare Barclay, CEO of Microsoft UK, said.

“This exciting new five-year partnership will mean Microsoft can continue to support the UK Government to create a world-class, digital-first public sector infrastructure, that will improve service delivery for citizens across the whole of the UK and create opportunities for all.”

Accelerating the adoption of digital technologies could add £550bn to the UK’s GDP by 2035, recent research from Public First found.

The partnership will also provide a platform for Microsoft to support the UK government’s missions to deliver this economic growth needed to fund public services.

The new deal will also focus on developing the skills necessary for a flourishing UK AI sector. Microsoft is currently developing new certifications and skilling programmes for public sector employees, as well as further investment by Microsoft in its Enterprise Skills Initiative.

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Further, the UK government is aiming to build the next generation of government cloud services to enhance data quality and productivity, which will be supported by Microsoft’s AI-powered services.

“This agreement will support eligible public sector organisations to pursue their digital transformation and innovation ambitions, by enabling them to benefit from leveraging the size and scale of the UK public sector,” Roger Gonourie, chief commercial officer at the Crown Commercial Service (CCS), said.

“It shows CCS’s continued commitment to providing maximum commercial value for our customers, removing barriers to growth across the public sector. It’s about securing a better future for us all.”