Digital Omnibus on AI: Regulatory sandboxes and real-world testing
As our recent Law-Now notes, the European Commission’s Digital Omnibus on AI introduces a dual-layer sandbox structure. This comprises both a national sandbox and, for the first time, a formal EU-level regulatory sandbox, which will be operated by the AI Office from 2028 onwards.
As part of our AI Watch series, we are examining key parts of the Omnibus and explaining the real-world impacts that it may have.
The Sandbox
Under the EU AI Act, every Member State must establish at least one AI regulatory sandbox by 2 August 2026. These sandboxes will provide a supervised environment in which AI providers can develop, train, validate, and test innovative systems, including under real-world conditions where appropriate.
To ensure consistency and avoid fragmentation, the Commission has published a draft Implementing Regulation which sets out the rules for how these sandboxes should operate. Stakeholders are invited to share feedback during the consultation period:
- Deadline for feedback: midnight on 30 December 2025 (draft Regulation)
- Public consultation closes: 6 January 2026 (draft implementing act)
This initiative aims to strike the right balance between innovation and compliance, supporting businesses while safeguarding fundamental rights.
Comment:
Regulatory sandboxes offer organisations a strategic opportunity to innovate responsibly. By enabling real-world testing under regulatory supervision, businesses can:
- Accelerate AI deployment while mitigating legal and reputational risks.
- Engage with regulators early on to shape practical guidance and influence future standards.
- Build trust with stakeholders by demonstrating transparency and accountability.
For AI developers and users, these sandboxes could become a competitive differentiator, enabling faster market entry without compromising on ethics or compliance. As the EU aims to harmonise rules across Member States, organisations should start planning now to make the most of these frameworks.
This piece will be followed up with a series of short articles on the other key elements of the Omnibus.
