It does work as a ritual. I have used it many times with my Wizard casting Detect Magic as a ritual and it does not need to be prepared for a wizard to cast it as a ritual. A floater message will briefly appear above the heads of party members that says something like "Magic Detected" and then if you look in the inventory screens you will see a ? on magic items.
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Wizards, only, do not need to prepare Ritual spells (though I find that limitation for other casters a bit too harsh).
Also, casting a spell as a Ritual should still require the Material component (or Focus/Component pouch) or Material cost if any. Of course, this is just a tabletop concern, as Solasta will allow players to turn off Material components at any time in-game.