Microsoft Paint and Photos applications are embedding invisible watermarks into AI-generated images. This occurs even when images are generated locally, as the prompt itself is sent to a remote server for moderation. The server returns a Globally Unique Identifier (GUID) which is then embedded into the image.
The process involves sending the user's prompt to a remote server for content moderation. Upon approval, the server provides a GUID that is then incorporated into the generated image as an invisible watermark. This mechanism operates independently of any visible watermark settings within the applications.
While Microsoft has shipped local AI models within Windows for applications like Paint, particularly for Copilot+ PCs, the prompt moderation step remains a remote process. This means that even if the image generation itself happens on the user's device, the interaction with a remote server for moderation and GUID assignment still occurs.
Microsoft has stated that Paint adds C2PA metadata to AI-generated images. Saving these images is restricted to C2PA-preserving formats such as PNG, JPEG, GIF, and the proprietary .paint format, ensuring the embedded GUID and other metadata persist within the file.
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Microsoft's Paint and Photos applications invisibly watermark AI-generated images, even those created locally, with a GUID after sending prompts to a remote server for moderation. This occurs regardless of visible watermark settings and applies to images saved in C2PA-preserving formats like PNG, JPEG, GIF, and .paint. The practice raises questions about user privacy and the traceability of AI-generated content.