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What is it actually?
Tool automates manual tests.
What you get as a result is a report of what is working and what is not. Instantly!
When to use it?
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for critical functionalities:
those you need early notice of when not working -
for high cost tasks:
repetitive, taking long time, many people or effort
Costs
Customer is billed only for creation of the automated tests. If additional resources are needed, like machine for load testing, then these are agreed separately.
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Tools
Selenium is used for building automated tests for web and mobile. JMeter for performance checks. SoapUI for testing RESTful APIs.
Dedicated test framework as a test-tool can be coded using widely known libraries and easy to use language, interfacing Product Owners or other non-technical team members using BDD.
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