diff --git a/Gems/Atom/Asset/ImageProcessingAtom/Assets/Config/GSI.preset b/Gems/Atom/Asset/ImageProcessingAtom/Assets/Config/GSI.preset
index 78f4c7ad76..1f4f455b89 100644
--- a/Gems/Atom/Asset/ImageProcessingAtom/Assets/Config/GSI.preset
+++ b/Gems/Atom/Asset/ImageProcessingAtom/Assets/Config/GSI.preset
@@ -6,7 +6,7 @@
         "DefaultPreset": {
             "UUID": "{C5E76E09-39FA-411F-B2E2-15B47BB6AB5F}",
             "Name": "GSI",
-            "UncompressedAutoPick": true,
+            "OutputTypeHandling": "UseInputFormatAndBitDepth",
             "IsPowerOf2": true,
             "MipMapSetting": {
                 "MipGenType": "Box"
@@ -16,7 +16,7 @@
             "android": {
                 "UUID": "{C5E76E09-39FA-411F-B2E2-15B47BB6AB5F}",
                 "Name": "GSI",
-                "UncompressedAutoPick": true,
+                "OutputTypeHandling": "UseInputFormatAndBitDepth",
                 "MaxTextureSize": 2048,
                 "IsPowerOf2": true,
                 "MipMapSetting": {
@@ -26,7 +26,7 @@
             "ios": {
                 "UUID": "{C5E76E09-39FA-411F-B2E2-15B47BB6AB5F}",
                 "Name": "GSI",
-                "UncompressedAutoPick": true,
+                "OutputTypeHandling": "UseInputFormatAndBitDepth",
                 "MaxTextureSize": 2048,
                 "IsPowerOf2": true,
                 "MipMapSetting": {
@@ -36,7 +36,7 @@
             "mac": {
                 "UUID": "{C5E76E09-39FA-411F-B2E2-15B47BB6AB5F}",
                 "Name": "GSI",
-                "UncompressedAutoPick": true,
+                "OutputTypeHandling": "UseInputFormatAndBitDepth",
                 "IsPowerOf2": true,
                 "MipMapSetting": {
                     "MipGenType": "Box"
@@ -45,7 +45,7 @@
             "provo": {
                 "UUID": "{C5E76E09-39FA-411F-B2E2-15B47BB6AB5F}",
                 "Name": "GSI",
-                "UncompressedAutoPick": true,
+                "OutputTypeHandling": "UseInputFormatAndBitDepth",
                 "IsPowerOf2": true,
                 "MipMapSetting": {
                     "MipGenType": "Box"
diff --git a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/BuilderSettings/PresetSettings.cpp b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/BuilderSettings/PresetSettings.cpp
index 56e16bdcc9..eb37f3e4b9 100644
--- a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/BuilderSettings/PresetSettings.cpp
+++ b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/BuilderSettings/PresetSettings.cpp
@@ -51,7 +51,7 @@ namespace ImageProcessingAtom
                 ->Field("Swizzle", &PresetSettings::m_swizzle)
                 ->Field("CubemapSettings", &PresetSettings::m_cubemapSetting)
                 ->Field("MipMapSetting", &PresetSettings::m_mipmapSetting)
-                ->Field("UncompressedAutoPick", &PresetSettings::m_uncompressedAutoPick)
+                ->Field("OutputTypeHandling", &PresetSettings::m_outputTypeHandling)
                 ;
 
             serialize->Enum<RGBWeight>()
@@ -132,6 +132,11 @@ namespace ImageProcessingAtom
                 ->Value("R32", EPixelFormat::ePixelFormat_R32)
                 ->Value("Unknown", EPixelFormat::ePixelFormat_Unknown)
                 ;
+
+            serialize->Enum<OutputTypeHandling>()
+                ->Value("Default", OutputTypeHandling::USE_SPECIFIED_OUTPUT_TYPE)
+                ->Value("UseInputFormatAndBitDepth", OutputTypeHandling::USE_INPUT_FORMAT_AND_BIT_DEPTH)
+                ;
         }
     }
 
@@ -203,7 +208,7 @@ namespace ImageProcessingAtom
             m_swizzle == other.m_swizzle &&
             m_isMipRenormalize == other.m_isMipRenormalize &&
             m_numResidentMips == other.m_numResidentMips &&
-            m_uncompressedAutoPick == other.m_uncompressedAutoPick
+            m_outputTypeHandling == other.m_outputTypeHandling
             ;
     }
 
@@ -241,7 +246,7 @@ namespace ImageProcessingAtom
             m_swizzle = other.m_swizzle;
             m_isMipRenormalize = other.m_isMipRenormalize;
             m_numResidentMips = other.m_numResidentMips;
-            m_uncompressedAutoPick = other.m_uncompressedAutoPick;
+            m_outputTypeHandling = other.m_outputTypeHandling;
         }
     }
 
diff --git a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/BuilderSettings/PresetSettings.h b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/BuilderSettings/PresetSettings.h
index 89870f6099..5caa49d4da 100644
--- a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/BuilderSettings/PresetSettings.h
+++ b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/BuilderSettings/PresetSettings.h
@@ -25,6 +25,13 @@ namespace ImageProcessingAtom
         AZ_TYPE_INFO(PresetSettings, "{4F4DEC5C-48DD-40FD-97B4-5FB6FC7242E9}");
         AZ_CLASS_ALLOCATOR(PresetSettings, AZ::SystemAllocator, 0);
 
+        //! Custom overrides for how to handle the output format
+        enum OutputTypeHandling
+        {
+            USE_SPECIFIED_OUTPUT_TYPE = 0,
+            USE_INPUT_FORMAT_AND_BIT_DEPTH
+        };
+
         PresetSettings();
         PresetSettings(const PresetSettings& other);
         PresetSettings& operator= (const PresetSettings& other);
@@ -103,9 +110,8 @@ namespace ImageProcessingAtom
         //"swizzle". need to be 4 character and each character need to be one of "rgba01"
         AZStd::string m_swizzle;
 
-        //! Convert to an uncompressed pixel format that automatically picks a preferred pixel
-        //! format based on the source input
-        bool m_uncompressedAutoPick = false;
+        //! Controls how the output type format is derived
+        OutputTypeHandling m_outputTypeHandling = USE_SPECIFIED_OUTPUT_TYPE;
 
     protected:
         void DeepCopyMembers(const PresetSettings& other);
@@ -140,3 +146,10 @@ namespace ImageProcessingAtom
     };
     
 } // namespace ImageProcessingAtom
+
+namespace AZ
+{
+    // Bind enums with uuids. Required for named enum support.
+    // Note: AZ_TYPE_INFO_SPECIALIZE has to be declared in AZ namespace
+    AZ_TYPE_INFO_SPECIALIZE(ImageProcessingAtom::PresetSettings::OutputTypeHandling, "{F919ECB6-BF80-4BEF-9E72-EA76504EBE9D}");
+}
diff --git a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Processing/ImageConvert.cpp b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Processing/ImageConvert.cpp
index ec048e8758..0de941b85e 100644
--- a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Processing/ImageConvert.cpp
+++ b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Processing/ImageConvert.cpp
@@ -535,17 +535,20 @@ namespace ImageProcessingAtom
         m_image->GetCompressOption().rgbWeight = m_input->m_presetSetting.GetColorWeight();
         m_image->GetCompressOption().discardAlpha = m_input->m_presetSetting.m_discardAlpha;
 
-        // If the m_uncompressedAutoPick flag is set, then let the converter pick
-        // a pixel format that best matches the source input format
-        if (m_input->m_presetSetting.m_uncompressedAutoPick)
-        {
-            EPixelFormat sourceInputFormat = m_input->m_inputImage->GetPixelFormat();
-            m_image->ConvertFormat(sourceInputFormat);
-        }
-        // Otherwise, convert to the pixel format specified by the preset that was chosen
-        else
+        // Convert to a pixel format based on the desired handling
+        // The default behavior will choose the output format specified by the preset
+        switch (m_input->m_presetSetting.m_outputTypeHandling)
         {
+        case PresetSettings::OutputTypeHandling::USE_INPUT_FORMAT_AND_BIT_DEPTH:
+            {
+                EPixelFormat sourceInputFormat = m_input->m_inputImage->GetPixelFormat();
+                m_image->ConvertFormat(sourceInputFormat);
+            }
+            break;
+        case PresetSettings::OutputTypeHandling::USE_SPECIFIED_OUTPUT_TYPE:
+        default:
             m_image->ConvertFormat(m_input->m_presetSetting.m_pixelFormat);
+            break;
         }
 
         return true;