New Microsoft 365 Cloud Policy Adds Watermarks to AI-Generated Content

New Microsoft 365 Cloud Policy Adds Watermarks to AI-Generated Content

Soon, we will be able to enforce a policy that automatically adds watermarks to AI-generated or AI-altered video and audio content in Microsoft 365.

From mid-March 2026, admins can enable a Cloud Policy that automatically adds:

  • Visual watermarks to AI-generated or edited videos
  • Audio watermarks to AI-generated or edited audio
  • This policy doesn’t cover images, but users can enable image watermarks themselves through their Microsoft account privacy settings (coming late February 2026).

This applies to content created using AI across Microsoft 365 apps (for example, Copilot or Clipchamp).

  • → Watermarks are OFF by default; admins must explicitly enable the policy.
  • → The policy is available only through Cloud Policy, not other admin portals.
  • → This is tied to Microsoft’s Enterprise AI Services Code of Conduct, which already holds organizations accountable for not creating or sharing deceptive AI content.

Transparency around AI-generated content is only going to become more important. Good to see the tooling catching up.

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