What Is Regulatory Sandbox?
Regulatory Sandbox is a supervised environment in which organisations can test innovative AI products with real users under temporary regulatory relief and close regulator oversight.
Regulatory Sandbox — a supervised environment in which organisations can test innovative AI products with real users under temporary regulatory relief and close regulator oversight.
AI regulatory sandboxes let firms trial systems that might not yet fit existing rules, with the regulator observing and providing guidance. The EU AI Act requires member states to establish at least one AI regulatory sandbox by August 2026. The UK FCA pioneered the sandbox model in fintech, and several financial regulators run AI-specific sandboxes. For organisations, a sandbox offers a lower-risk path to deploy novel AI; for regulators, it is a way to learn how to regulate emerging technology.
Source: EU AI Act, Articles 57–59; FCA Regulatory Sandbox
Plain-language explanation
AI regulatory sandboxes let firms trial systems that might not yet fit existing rules, with the regulator observing and providing guidance. The EU AI Act requires member states to establish at least one AI regulatory sandbox by August 2026. The UK FCA pioneered the sandbox model in fintech, and several financial regulators run AI-specific sandboxes. For organisations, a sandbox offers a lower-risk path to deploy novel AI; for regulators, it is a way to learn how to regulate emerging technology.
See where you stand on AI governance
Take the free 7-question maturity assessment and get a personalised action plan.
Free assessment — 3 minutes →