Yes, it does. The idea is that the same template will have different information when used on different computers.

I once did this with several levels of globals: One for the firm with logos and main addresses, one with regional office information, one with local office information, and one with individual attorney information. The firm letterhead wanted all of that.
If you want, you can include an AutoNew macro in your templates to update all AutoText fields upon document creation. That is what I do.

You can also have it lock or unlink the field once it is updated so if the document is sent out in Word format it will not cause confusion or get error messages for AutoText not found.
Again, these snippets do not have to be in AutoText; they can be in any Building Block gallery including the custom ones. The AutoText Field still gets the info.