Beyond Heuristic Tuning: Power-Calibrated LLM Watermarking

As large language models (LLMs) become widely deployed, their outputs can be copied, transformed, and redistributed at scale without reliable evidence of origin, creating risks for trust, accountability, intellectual property (IP) protection, and high-stakes decision-making. LLM watermarking addresses this problem by embedding detectable signals into text during or after generation. However, existing methods vary in design assumptions, threat models, and evaluation criteria, while deployment choices such as watermark placement, detection authority, and key management affect reliability, security, and scalability. This paper systematizes LLM watermarking as provenance infrastructure for large-scale data ecosystems. We organize existing approaches along four deployment dimensions: insertion point, verification authority, operational state, and transformation threat model, and relate them to the big data requirements of Volume, Velocity, Variety, Veracity, and Value. We further introduce a Big Data Watermarking Readiness framework centered on four deployment workloads: online generation, streaming detection, transformation pipelines, and ecosystem governance. The framework connects these workloads to system-level requirements including throughput, false-positive control, robustness, cross-domain reliability, governance, and downstream utility. Our analysis highlights a gap between benchmark performance and deployment readiness: false positives accumulate at scale, repeated transformations weaken watermark signals, computational overhead can limit online deployment, and centralized verification can create governance bottlenecks. We conclude with an evaluation blueprint and research directions for scalable, trustworthy provenance in big data ecosystems.

Detecting machine-generated text is essential for transparency and accountability when deploying large language models (LLMs). Among detection approaches, watermarking is a statistically reliable method by design -- it embeds detectable signals into LLM outputs by biasing their token distributions. However, it has been reported that watermarked LLMs often perform worse on downstream tasks. We propose PUPPET, a framework that fine-tunes an LLM via reinforcement learning to generate text that is both more detectable and better performing on downstream tasks. We use two reward functions: a detector that outputs a machine-class likelihood and an evaluator that measures a task-specific metric. Experiments on long-form QA, summarization, and essay writing show that LLMs trained with PUPPET achieve high detectability competitive with watermarking methods while outperforming them on downstream tasks. The analysis shows that this optimization can be performed efficiently with only a few thousand samples in 1--2 GPU hours. Moreover, these gains are consistent across out-of-domain tasks, different LLM families, and model sizes, and are even robust to paraphrasing attacks.

Large language models (LLMs) have achieved remarkable success but raise growing concerns about content provenance and misuse, motivating the need for reliable watermarking techniques. However, these techniques have rarely been adopted in practice mainly for two reasons: i) severely degraded model performance, and ii) additional inference overhead. To confirm the problem, we construct a comprehensive benchmark spanning different generation tasks to systematically evaluate 9 representative watermarking methods. We found almost all existing methods are designed for text fluency, but not for restricted and complicated tasks, and their overhead prevents them from deployment in latency-critical systems. To address i) and ii), we propose an LLM watermarking scheme \textit{WaterMoE} for the growingly popular Mixture-of-Experts (MoE) LLMs. WaterMoE embeds watermarking signals through controlled perturbation into the expert selection at each router, which accumulates to token selection shift at the final output. In contrast to watermarking as a post-processing token-sampling approach, WaterMoE embeds watermark within the inference loop incurring negligible quality degradation and computational overhead. Extensive experiments demonstrate that our method achieves a fidelity performance close to the unwatermarked and consistently outperforms state-of-the-art watermarking methods on the benchmark, with up to $4\times$ speedup, incurring merely 1% additional inference latency compared to native generation. The results demonstrate the capability of WaterMoE to be deployed in real-world tasks.