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A controlled environment established by a regulator that allows organizations to test innovative products or AI systems under real conditions with relaxed regulatory requirements. The EU AI Act requires each EU member state to establish at least one AI regulatory sandbox by August 2026. Sandboxes are particularly useful for startups and SMEs developing AI systems that might otherwise face regulatory barriers before they have the resources to achieve full compliance. Participation typically involves close regulator supervision and does not guarantee a compliance pass.
Why this matters for your team
If you're an EU startup developing a potentially high-risk AI system, a national regulatory sandbox lets you test under real conditions with regulatory guidance before full compliance is required. Participation is also a strong signal to investors and customers that your compliance approach is proactive.
A health tech startup developing an AI diagnostic tool applies to participate in the Netherlands' AI regulatory sandbox, allowing them to test the system with real patient data under regulatory guidance before full compliance is required.