Carbon27’s Pivot: A Virtual Prototype with Generative AI

The case describes an entrepreneur’s foray into the complex world of carbon credit markets. His venture, Carbon27, designed an IOT prototype that could be attached to solar panels, and a software platform to enable homeowners (as well as commercial firms) to generate carbon credits and facilitate entry into the carbon markets. After making initial progress, macro-economic events pushed the founder to explore different market segments. The case reveals how he used large language models to help identify risks and design prototypes and experiments to pivot to new markets quickly and inexpensively.

This case is suitable for courses on business model innovation or innovation tournaments, to discuss how large language models (LLMs) can be used to support the innovation process. The focus is on the role of LLMs in identifying risk points and generating ideas for prototypes and/or experiments that reduce those risks for early-stage entrepreneurial ventures. The case illustrates one approach to pivoting a technology and business model innovation from one setting (Ireland) to another (the Arabian Gulf).