MC1221451 – New policy to add watermarks to content generated or altered by using AI in Microsoft 365

Product:

Clipchamp, Copilot, Copilot Chat, Microsoft 365 Apps, Microsoft 365 Copilot

Platform:

Android, iOS, Mac, Online, Web, Windows Desktop, World tenant

Status:

In development

Change type:

New feature, User impact, Admin impact

Links:

547831

Details:

Summary:
Microsoft 365 will offer a policy to add visual or audio watermarks to AI-generated or altered video and audio content, available via Cloud Policy by February 2026. This enhances transparency but does not apply to images, which users can watermark through privacy settings separately.

Details:
[Introduction]
To help provide additional transparency about what content has been generated or altered by using AI in Microsoft 365, Microsoft is providing you with a policy setting that visually designates when content, such as video or audio content, is generated or altered by using AI. This policy setting controls your organization's option to add a visual or audio watermark to video and audio content that your users generate or alter by using AI in Microsoft 365.
To turn on watermarks for video and audio content that your users generate or alter by using AI in Microsoft 365, you need to use the "Include a watermark when content from Microsoft 365 is generated or altered by AI" policy. This policy is available only in Cloud Policy service for Microsoft 365.
Note: Watermarks are not turned on unless you set the policy to Enabled. Your organization is always responsible for following the Microsoft Enterprise AI Services Code of Conduct, including not generating or sharing deceptive AI content.
This change is associated with Microsoft 365 Roadmap ID: 547831.
[When this will happen]
General Availability (Worldwide): We anticipate that this policy will be available in Cloud Policy by the second half of February 2026.

Change Category:
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Scope:
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Release Phase:
General Availability

Created:
2026-01-23

updated:
2026-01-23

Task Type

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Docu to Check

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MS How does it affect me

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summary for non-techies**

Microsoft is introducing a policy for Microsoft 365 by February 2026 that allows organizations to add watermarks to AI-generated or altered content, providing transparency and control over AI involvement in videos and audio, while image watermarking requires separate management through privacy settings.

Direct effects for Operations**

User Experience Degradation
Users may experience confusion or frustration due to the unexpected presence of watermarks on their AI-generated content, which could detract from the perceived professionalism of their work.
   - roles: Content Creators, Marketing Teams
   - references: https://learn.microsoft.com/copilot/microsoft-365/watermarks, https://www.microsoft.com/microsoft-365/roadmap?searchterms=547831

Increased Workload for Users
Users may need to spend additional time managing or removing watermarks from their content, which could lead to decreased productivity and increased frustration.
   - roles: Content Creators, Project Managers
   - references: https://learn.microsoft.com/copilot/microsoft-365/watermarks, https://learn.microsoft.com/legal/ai-code-of-conduct " target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/legal/ai-code-of-conduct

Compliance and Legal Risks
Without proper communication about the watermark policy, users may inadvertently violate the Microsoft Enterprise AI Services Code of Conduct, leading to potential compliance issues.
   - roles: Compliance Officers, Legal Teams
   - references: https://learn.microsoft.com/legal/ai-code-of-conduct, https://learn.microsoft.com/microsoft-365-apps/admin-center/overview-cloud-policy

Configutation Options**

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Opportunities**

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Potentional Risks**

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Data Protection**

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IT Security**

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DPIA Draft**

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explanation for non-techies**

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