Ancient Lore is the identify item ability in W&W. So I finallly got a character to get promoted to Warlock. Now how do I use it? It does not seem to work. Most items I have seem fairly mundane. I would think my Lizard Warlock would at least be able to identify a common sword. But still. Is there a method to identify or is it automatic?

Never mind figured it out. Another level up and I should be good.

To identify items, you need two things:

1, the ancient lore trait.
2, the artifacts skill

Ancient lore is gained by training it at the temple or mage's guild, but becoming a warlock gives it to the character for free.

Then you need to train artifacts skill at one of the above guilds, and it's level determines what items you can identify - the more difficult to identify item, the higher artifacts skill needed.