MC833890Microsoft Word, Excel, PowerPoint: Protect sensitive files with dynamic watermarking

Updated April 22, 2025: We have recently implemented the necessary fixes to expand the GA scope, enabling support for dynamic watermarking on labels with both user-defined and admin-defined permissions (the original scope).

Dynamic watermarking is a new sensitivity label setting that will add watermark text containing the consuming user’s information onto content in files created in Microsoft Word, Excel, and PowerPoint. This setting is supported for labels with admin-defined protection. Sensitivity labels from Microsoft Purview Information Protection help you classify and protect your organization's data. Learn more: (Preview) Dynamic watermarking for sensitivity labels in Word, Excel, and PowerPoint - Microsoft Community Hub

This message applies to Word, Excel, and PowerPoint on the web, Desktop/Windows, Mac, Android, and iOS platforms.

This message is associated with Microsoft 365 Roadmap ID 400717.

When this will happen:

Public Preview: We will begin rolling out mid-July 2024 and expect to complete by early August 2024.

General Availability (Worldwide): We will begin rolling out to Current Channel mid-January 2025 (previously mid-November) and expect to complete by late February 2025 (previously late January).

The rest of the channels will follow in line with their normal cadence.

How this will affect your organization:

Before the rollout: Admins are not able to configure dynamic watermarking though sensitivity labels in Word, Excel, and PowerPoint.

After the rollout, refer to the admin documentation to configure dynamic watermarks in your tenant. This feature is off by default. Admins must configure the feature before it is accessible to users.

What you need to do to prepare:

This rollout will happen automatically by the specified date with no admin action required before the rollout. You may want to notify your users about this change and update any relevant documentation.

Learn more

• Apply encryption using sensitivity labels | Microsoft Learn
• (Preview) Dynamic watermarking for sensitivity labels in Word, Excel, and PowerPoint - Microsoft Community Hub