Used car retailer Motorpoint has reported a sharp rise in profits after using artificial intelligence to boost its online sales. The London-listed company said it has sold hundreds of cars through its new AI agent, which has become a key part of its digital sales strategy.
CEO Mark Carpenter said the technology, internally called Lily, helped the company maintain conversations with potential buyers in a way that human agents often couldn’t.
“Since we launched the AI agent, we have sold about 350 vehicles,” Carpenter said. “Our sales reps keep asking who Lily is, because Lily is the name of the online agent who sold the car. The main purpose is to move customers along in the buying process. So when they need to interact with our team, we can answer questions faster and make the process more satisfying.”
Motorpoint said its AI-driven, data-driven approach to vehicle sourcing and customer engagement is now fully integrated across its operations. The strategy contributed to an 80 per cent rise in profits to £2.7 million and a 15 per cent increase in sales to £647.7 million in the six months to the end of September.
The strong performance underlines how digital transformation is reshaping the UK automotive retail market. Motorpoint uses technology to optimize the car buying experience and increase efficiency at a time when consumer confidence remains fragile.
However, Carpenter joined a growing list of British business leaders warning that economic uncertainty surrounding next month’s autumn budget could dampen consumer sentiment ahead of the festive trading period.
A range of potential tax changes – including increases to income tax, National Insurance, bank levies, car duties and property taxes – have been revealed by Treasury sources ahead of Chancellor Rachel Reeves’ Budget on November 26. The Chancellor is expected to increase taxes by at least £30 billion to plug the growing budget gap.
“Chasing various tax changes, whether leaked or speculative, is extremely useless when clients begin to doubt their disposable income,” Carpenter said. “Uncertainty is always the worst thing in business. Any leader would prefer a stable, known environment – and with this year’s budget arriving a month later than usual, it’s even harder for seasonal retailers to prepare for Christmas when people aren’t sure how much they’ll have to spend.”
Motorpoint, which specializes in new cars, has invested heavily in digital tools and automation to remain competitive amid tight margins and volatile consumer demand. The company said it will continue to expand its AI-powered operations to deliver faster responses, smarter pricing and a more personalized customer experience.
