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1. Log on to your domain controller and open group policy

wsus-configure-grouppolicy-fig1

2. Create a new policy 

wsus-configure-grouppolicy-fig2

3. Edit the new policy and go to Computer Configuration > Administrative Templates > Windows Components > Windows Updates

wsus-configure-grouppolicy-fig3

4. Double click on “Configure Automatic Updates” select “Enabled” then OK

wsus-configure-grouppolicy-fig4

5. Double click on “Specify intranet Microsoft update service location” specify the server name in both boxes then OK

wsus-configure-grouppolicy-fig5

6. Workstation and server can take some time to be shown in the WSUS console so its a good idea to approve the updates before setting this group policy

Watch Video on how to configure group policy for WSUS