An AI Regulatory Sandbox is a framework where companies can test novel and complex regulatory questions under the supervision of the relevant competent authorities, ensuring their AI systems comply with the AI Act and other applicable laws before they are placed on the market or put into operation. Specifically envisioned by the AI Act, the focus of these sandboxes is to foster innovation. Within this controlled environment, AI Regulatory Sandboxes facilitate, for a limited period, the development, training, testing, and validation of innovative AI systems, based on an AI Regulatory Sandbox plan agreed upon with the competent authority.
The activities conducted within the AI Regulatory Sandbox, their results, and the insights gained are documented in a final report – the so called exit report – and the key insights are made accessible to all AI innovators for scaling purposes. This is intended to ease and accelerate market entry, particularly for SMEs and start-ups.
AI Regulatory Sandboxes can be established in physical, digital, or hybrid forms and can encompass both physical and digital products. They also allow for testing under real-world conditions, conducted under supervision