Glossary term
Glossary term
Governance and Compliance
A supervised environment where organizations can test AI innovations with regulator engagement. Sandboxes can help clarify compliance expectations while reducing uncontrolled public exposure. Sandboxes do not remove accountability; participants still need documentation, risk controls, privacy protections, and clear boundaries for testing.
EU AI Act Articles 57 to 63 require Member States to establish at least one AI regulatory sandbox by 2 August 2026, supporting innovation under regulator supervision.
Spain launched the first national AI sandbox in 2022, hosted by SEDIA, with a focus on high-risk AI systems and conformity assessment learnings.
Singapore's IMDA AI Verify Foundation and the UK FCA Digital Sandbox provide regulator-supervised testing environments for AI in financial services.