Motorpoint sold hundreds of cars using AI agent as profits jump
Motorpoint has revealed it sold hundreds of cars using its new AI agent as the car dealer reported a jump in profits.
Chief executive Mark Carpenter said the use of the agent allowed the London-listed firm to be more persistent with its sales strategy when human sales agents might have given up.
“We’ve sold about 350 vehicles with the AI agent in the period since we’ve been using it,” Carpenter said.
“Our sales agents keep asking who Lily is, because Lily is the name of the online agent [who sold the car].
“[But] the primary use is to get customers further down the line in purchasing the vehicle and when they actually do need to interact with one of our team then we can get the answer for the customer quicker which is more satisfying.”
Motorpoint said its investment in an AI-powered, data-led approach to buying and selling cars is now embedded in its operational model and drove both an increase in buying activity.
The firm reported an 80 per cent jump in profit to £2.7m for the six months to the end of September, while turnover climbed 15 per cent to £647.7m.
Motorpoint shares fell 0.7 per cent to 153p on Wednesday morning. The stock is up by more than 13 per cent since the start of the year.
Budget uncertainty hurting demand
Carpenter added his name to a growing list of chief executives who have warned that uncertainty over Budget tax hikes could be damaging the economy.
A whole host of tax changes have been mooted by Treasury sources ahead of the Budget on 26 November, including on income tax, national insurance, bank taxes, vehicle levies, property taxes and more.
Chancellor Rachel Reeves is expected to hike taxes by at least £30bn in a bid to plug a widening fiscal black hole.
“Trailing different tax changes, whether they’ve been leaked or whether it’s just speculation… is hugely unhelpful when customers are putting doubts into their minds,” Carpenter said.
“The uncertainty is always the worst thing in business – any business leader would prefer a stable known environment when you have six months trailing potential tax changes.
“This year it’s a month later which is even worse for seasonal retailers…it’s not great if you’re going into a Christmas period with everybody not sure how much money is in their pocket.”