diff --git a/agent/cli.py b/agent/cli.py
index 4b95da5..69ac16e 100644
--- a/agent/cli.py
+++ b/agent/cli.py
@@ -485,5 +485,97 @@ def export_tests_history():
 
     click.echo(f"\n✅ Test cases history exported to knowledge_base/test_cases_history.md\n")
 
+# Command: generate test case with AI
+@cli.command()
+def generate_test():
+    """Generate a test case automatically using AI."""
+    import ollama
+
+    click.echo("\n🤖 AI Test Case Generator\n")
+
+    feature = click.prompt("   Describe the feature to test")
+    area = click.prompt("   Area (ex: Project/Login)")
+    assigned_to = click.prompt("   Assigned to")
+
+    prompt = f"""
+You are a QA expert. Generate a test case for the following feature:
+
+Feature: {feature}
+Area: {area}
+
+Respond ONLY in this exact JSON format, nothing else:
+{{
+    "title": "test case title",
+    "steps": [
+        {{
+            "step": 1,
+            "action": "action description",
+            "expected": "expected result"
+        }}
+    ]
+}}
+
+Generate between 3 and 5 steps. Be specific and technical.
+"""
+
+    click.echo("\n⏳ Generating test case...\n")
+
+    response = ollama.chat(
+        model="llama3.2",
+        messages=[{"role": "user", "content": prompt}]
+    )
+
+    import json as json_module
+    try:
+        raw = response["message"]["content"]
+        start = raw.find("{")
+        end = raw.rfind("}") + 1
+        generated = json_module.loads(raw[start:end])
+    except Exception:
+        click.echo("\n❌ Error generating test case. Please try again.\n")
+        return
+
+    click.echo(f"\n📋 Generated Test Case:\n")
+    click.echo(f"   Title: {generated['title']}")
+    click.echo(f"\n   Steps:")
+    for step in generated["steps"]:
+        click.echo(f"\n   {step['step']}. {step['action']}")
+        click.echo(f"      ✅ Expected: {step['expected']}")
+
+    click.echo("")
+    confirm = click.confirm("   Save this test case?", default=True)
+
+    if not confirm:
+        click.echo("\n❌ Test case not saved.\n")
+        return
+
+    with open(TEST_CASES_PATH, "r") as f:
+        data = json.load(f)
+
+    existing_ids = [tc["id"] for tc in data["test_cases"]]
+    numbers = [int(id.replace("TC-", "")) for id in existing_ids if id.startswith("TC-")]
+    next_id = f"TC-{str(max(numbers) + 1).zfill(3)}" if numbers else "TC-001"
+
+    new_test = {
+        "id": next_id,
+        "work_item_type": "Test Case",
+        "title": generated["title"],
+        "area_path": area,
+        "assigned_to": assigned_to,
+        "state": "Active",
+        "playwright_file": "",
+        "steps": generated["steps"]
+    }
+
+    data["test_cases"].append(new_test)
+
+    with open(TEST_CASES_PATH, "w") as f:
+        json.dump(data, f, indent=2, ensure_ascii=False)
+
+    log_event("test_created", next_id, f"Test case '{generated['title']}' generated by AI")
+
+    click.echo(f"\n✅ Test case '{next_id}' saved successfully!\n")
+
+
 if __name__ == "__main__":
     cli()
\ No newline at end of file
diff --git a/agent/menu.py b/agent/menu.py
index 7623c80..83f8cda 100644
--- a/agent/menu.py
+++ b/agent/menu.py
@@ -22,6 +22,7 @@ def test_cases_menu():
                 "👁️  View Test Cases",
                 "🔍 Search Test Cases",
                 "➕ Create Test Case",
+                "🤖 Generate Test Case with AI",
                 "✏️  Update Test Case",
                 "👤 Assign Test Case",
                 "🎭 Run Playwright Test",
@@ -70,6 +71,10 @@ def test_cases_menu():
         elif choice == "➕ Create Test Case":
             run_command(["add-test"])
             wait_for_menu()
+        
+        elif "Generate Test Case with AI" in choice:
+            run_command(["generate-test"])
+            wait_for_menu()
 
         elif choice == "✏️  Update Test Case":
             test_id = questionary.text("Test Case ID (e.g. TC-001):").ask()
diff --git a/knowledge_base/history.json b/knowledge_base/history.json
index db15140..97c4a70 100644
--- a/knowledge_base/history.json
+++ b/knowledge_base/history.json
@@ -53,6 +53,12 @@
       "type": "test_run",
       "test_id": "TC-001",
       "details": "Playwright test ran — result: Passed"
+    },
+    {
+      "timestamp": "2026-08-11 10:31",
+      "type": "test_created",
+      "test_id": "TC-003",
+      "details": "Test case 'Log in Test Case' generated by AI"
     }
   ]
 }
\ No newline at end of file
diff --git a/knowledge_base/test_cases/test_cases.json b/knowledge_base/test_cases/test_cases.json
index 88a9f08..ddb8308 100644
--- a/knowledge_base/test_cases/test_cases.json
+++ b/knowledge_base/test_cases/test_cases.json
@@ -53,6 +53,32 @@
           "expected": "Error message is displayed"
         }
       ]
+    },
+    {
+      "id": "TC-003",
+      "work_item_type": "Test Case",
+      "title": "Log in Test Case",
+      "area_path": "login",
+      "assigned_to": "Diogo",
+      "state": "Active",
+      "playwright_file": "",
+      "steps": [
+        {
+          "step": 1,
+          "action": "Open the login page of the application in a web browser.",
+          "expected": "The login page should be displayed with the expected fields (username and password)"
+        },
+        {
+          "step": 2,
+          "action": "Enter valid credentials ('username' and 'password') into the respective fields on the login page.",
+          "expected": "A 'Login Successful' message should be displayed after clicking the submit button."
+        },
+        {
+          "step": 3,
+          "action": "Enter invalid credentials ('wrong username' and 'wrong password') into the respective fields on the login page.",
+          "expected": "An error message ('Invalid credentials') should be displayed next to the submit button."
+        }
+      ]
     }
   ]
 }
\ No newline at end of file