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Quality Engineering: GenAI for Test Automation

Market Analysis

by Gaurav Parab

published on Jan 16, 2026

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Report Overview:

NelsonHall’s Quality Engineering market analysis consists of 93 pages.

Who is this Report for:

NelsonHall’s Quality Engineering report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within the Quality Engineering outsourcing market 
  • Vendor marketing, sales, and business managers developing strategies to target Quality Engineering opportunities
  • Financial analysts and investors specializing in the Quality Engineering services sector.

Scope of this Report:

The report analyzes the worldwide market for Quality Engineering and addresses the following questions:

  • What is the market size and projected growth of the QE market globally and by region?
  • How is test automation evolving from traditional AI technologies to GenAI-led QE, and to Agentic AI?
  • How are vendors differentiating their offerings across test automation use cases
  • What test automation capabilities are vendors developing?
  • How are vendors using GenAI, traditional AI, and developing early Agentic AI use cases in QE?
  • Who are the leading vendors in the QE market globally and by region?
  • What factors are shaping client expectations and buying behavior for QE? 

Key Findings & Highlights:

AI’s role in QE continues to grow, evolving into LLM-based automation across lifecycle stages, including test design, change-impact analysis, risk-based regression, and defect triage. Early agentic patterns are emerging, moving from siloed QE activities to orchestrated workflows with increasing autonomous capabilities in test artifact generation, environment setup, and script maintenance.

Vendors are investing in unified QE platforms that combine traditional automation technologies such as ML, NLP, and computer vision with GenAI-driven test artifact generation, self-healing execution, and integrated test data management (TDM). These platforms increasingly cover API testing, performance engineering, and COTS testing. At the same time, development and testing are converging through shift-left adoption, copilots, and increasing integration of AI-assisted development and QE platforms. Testers are transitioning to SDET roles, supported by new AI skills, including prompt engineering, AI-assisted test automation, ML and analytics awareness, data skills, LLM usage, and Responsible AI in testing.

Domain-specific expertise, leveraging contextual layers of compliance mandates, taxonomy, and blueprints stacked on top of QE platforms, is growing as organizations operationalize GenAI in regulated sectors such as BFSI, retail, healthcare, and telecom. Vendors are differentiating through domain knowledge, pre-built assets, responsible AI frameworks, and compliance-aligned automation accelerators.

Pricing models centered on gain-sharing constructs, platform subscriptions, and limited agents-as-a-service offerings that complement traditional T&M and fixed-price models are emerging. However, NelsonHall sees limited adoption at this stage.

Clients are placing heightened emphasis on governance, explainability, and Responsible AI. As GenAI becomes embedded across the QE lifecycle, buyers increasingly prioritize vendor stability, transparent operating models, proven delivery maturity, and evidence of a strategic roadmap for integrating evolving AI capabilities.

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