Two alternative software tools for damage identification are presented. The first tool, developed on the basis of the Virtual Distortion Method (VDM), takes advantage of an analytical formulation of the damage identification problem. Consequently, gradient-based optimization method is applied to solve the resulting dynamic inverse problem in time domain. Finite element model of the structure is necessary for the VDM approach. The second tool utilizes the Case-Based Reasoning (CBR) for damage identification. This method consists in i) extracting principal features of the response signal by wavelet transform, ii) creating a base of representative damage cases, iii) organizing and training the base by neural networks, and finally iv) retrieving and adapting a new case (possible damage) by similarity criteria. Basic description of both approaches is given. A comparison of numerical effectiveness, in terms of accuracy and computational time, is provided for a simple beam structure. Advantages and weaknesses of each approach are highlighted.