SANDBOX Act
The SANDBOX Act would create a federal Artificial Intelligence Regulatory Sandbox Program, overseen by the Director of the Office of Science and Technology Policy (OSTP). The program allows AI developers to apply for temporary waivers or modifications of certain federal regulatory provisions (the “covered provisions”) in order to test and deploy AI products, services, or development methods on a limited basis without being fully bound by those rules. The aim is to spur AI innovation, economic opportunity, and job growth while providing safety and consumer protections. The process involves detailed agency review, risk assessments, written agreements, and public reporting. The program would run for up to 12 years with an initial two-year waiver period (and potential renewals), and it includes mechanisms for congressional oversight, state coordination, and a sunset. In short, the bill creates a formal, government-supervised sandbox to test AI with temporary regulatory relief, subject to risk mitigation, transparency, and ongoing review.
Key Points
- 1Establishment of a Federal AI Regulatory Sandbox Program under OSTP, with a formal process to apply for temporary waivers or modifications of covered provisions to test AI products, services, or development methods on a limited basis.
- 2Covered provisions and risk framework, including health and safety risk, risk of economic damage, and risk of unfair or deceptive trade practices; waivers apply to those provisions during testing but are to be weighed against potential benefits to consumers and innovation.
- 3Detailed application and agency review process, including required information from applicants, potential Director-submitted applications, agency advisory input, and decisions to grant or deny waivers, with a record of decisions and rationale.
- 4Consumer protection and transparency, including mandatory disclosures to consumers about sandbox participation, testing status, risk notices, and the requirement to report incidents; annual congressionally mandated program reports.
- 5Sunset and renewal mechanics: initial two-year waiver period with possible renewal for up to four additional two-year periods (up to 10 years total) and a 12-year overall program sunset; revocation for noncompliance; and process for revoking waivers if risks are not mitigated.