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FOCUS - Artificial Intelligence

 OECD-OECD - Regulatory Sandboxes in Artificial Intelligence - July 2023

Regulatory experimentation tools are used to test new economic, institutional and technological approaches, and legal provisions, outside of existing regulatory structures. This report focuses on regulatory sandboxes, where authorities engage firms to test innovative products or services that challenge existing legal frameworks. Participating firms obtain a waiver from specific legal provisions or compliance processes to innovate. This report presents lessons learnt from fintech regulatory sandboxes and their positive impacts, such as fostering venture capital investment in fintech start-ups. It covers challenges and risks involved in implementing regulatory sandboxes and their testing processes. This report presents policy considerations for AI regulatory sandboxes, including institutional interdisciplinary cooperation and the need to build up AI expertise within regulatory authorities. Findings underline the need for regulatory interoperability and the role that trade policy can play. Finally, it discusses the need for comprehensive criteria to determine sandbox eligibility and assess trials, and the potential impact of sandboxes on innovation and competition. 



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