Fos­ter­ing in­no­va­tion

• What is an AI regulatory sandbox?
• What are the aims of AI regulatory sandboxes?
• Pilot project for AI regulatory sandbox simulation
• Notice

What is an AI regulatory sandbox?

The AI Act requires the establishment of AI regulatory sandboxes as a key measure to foster innovation. This means that each Member State must ensure that at least one AI regulatory sandbox at national level has been established by 2 August 2026.

The UK’s Financial Conduct Authority introduced one of the world’s first regulatory sandboxes in November 2015 with the aim of supporting FinTech start-ups.

AI regulatory sandboxes established under the AI Act provide for a controlled environment to foster innovation. They facilitate the development, training, testing and validation of innovative AI systems for a limited period of time – even before their being placed on the market or put into service – on the basis of a sandbox plan agreed with the competent authority. New and complex legal questions from businesses are examined under the guidance of the competent authorities with a view to ensuring that the businesses’ AI systems comply with the AI Act and other applicable law before being placed on the market or put into service. The activities carried out in the sandbox and the related results and learning outcomes are detailed in an exit report. This aims to facilitate and accelerate access to the market, in particular for SMEs and start-ups.

AI regulatory sandboxes may be established in physical, digital or hybrid form and may accommodate physical as well as digital products. Testing in real world conditions may also be carried out and supervised in the framework of AI regulatory sandboxes.

What are the aims of AI regulatory sandboxes?

The establishment and the operation of AI regulatory sandboxes aim to contribute to the following objectives:

• Fostering innovation: A controlled environment facilitates the development, training, testing and validation of innovative AI systems. The learning outcomes from regulatory sandboxes are made available to all AI innovators.
• Enhancing legal certainty: Oversight by the authorities ensures regulatory compliance with the AI Act and other applicable law and reduces legal uncertainty.
• Facilitating regulatory learning: The experience from AI regulatory sandboxes facilitates regulatory learning for authorities and undertakings, also with a view to future adaptations of the legal framework.
• Accelerating access to the market: Removing barriers improves access to AI systems on the Union market, in particular for SMEs and start-ups.
• Promoting exchange: Cooperation between all the authorities involved in the AI regulatory sandbox supports the sharing of best practices.

Pilot project for AI regulatory sandbox simulation

The Bundesnetzagentur, the Hessian Ministry for Digitalisation and Innovation and the Federal Commissioner for Data Protection and Freedom of Information launched a joint pilot project for the simulation of an AI regulatory sandbox in May 2025. The aim of the project is to simulate key requirements, processes and challenges of AI regulatory sandboxes within the meaning of the AI Act in realistic conditions and expand knowledge and findings on AI regulatory sandboxes. The results from the pilot project will provide guidance for the future establishment and operation of real AI regulatory sandboxes and will be available by the end of 2025.

Notice

The European AI-on-Demand-Plattform (AIoD) provides stakeholders from research and industry with trustworthy access to European AI resources, including AI tools, data and services.