AI model watermarking changes agent behavior

Watermarks that European law requires be added to AI-generated content to establish provenance may come at a cost. According to Lasso Security, AI model watermarking changes how AI agents handle tools and safety refusals. The altered behavior isn't necessarily worse but can be, particularly under adversarial prompt injection. With the implementation of the EU AI Act, providers of AI models must mark the output of their software with machine-readable code. Google DeepMind's SynthID-Text is one me