Anthropic adds watermark to Claude outputs to flag AI-generated text

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Anthropic has introduced a watermarking system for text generated by its Claude models, using a deterministic, private-key-based method to select tokens without adding latency or consuming extra tokens. The move aligns with the EU Artificial Intelligence Act, passed in 2024, which mandates machine-readable labelling of AI-generated content for systems operating in Europe from August 2026. Despite several major tech companies signing on to related commitments, practical implementation across the industry remains limited. Key concerns holding companies back include potential revenue losses estimated at up to 30%, text traceability risks, and technical weaknesses such as reduced output creativity and vulnerability to rewriting attacks. Currently, the watermark can only confirm whether content was AI-generated or AI-altered, not trace it back to a specific author.

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