Record and Playback looks like an easy way of automating the UI. You record the screens and play it back. However, the issue arises when you do more than 100 cases or scenarios. It won't scale, Period. Let me list the shot comings in the traditional record and play back methods.
1. It wont scale
2. Collaborative testing in not possible
3. Can't handle the errors in the run time.
4. Maintenance is very costly if the UI changes frequently.
5. Finding new bugs is very limited.
Lot of people talked/wrote about the UI test automation. People like Cem Kaner and James Bach, wrote extensively. Cem Kaner published videos and I like James Bach's Test Automation a Snake Oil.
Will the test automation work? Yes, it will work, provided we didn't expect a magic wand. Before going the see how it will work. Let us see the available tools for this.