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In this video, the tutorial shows how to create Dynamic templates in DocuSign for professional-looking documents. Before discussing Dynamic documents, it explains that Static documents have predefined placeholders for variable text, like accreditation forms. In Static documents, the number and location of fields remain the same regardless of text length, so the document length doesn't change. On the other hand, in Dynamic documents like author letters, the location of variable text varies for each letter, such as job description and start date, making it customizable for each candidate.