**Target:** Proposal for a regulation — Recital 72

## Text proposed by the Commission

(72) The objectives of the regulatory sandboxes should be to foster AI innovation by establishing a controlled experimentation and testing environment in the development and pre-marketing phase with a view to ensuring compliance of the innovative AI systems with this Regulation and other relevant Union and Member States legislation; to enhance legal certainty for innovators and the competent authorities ’ oversight and understanding of the opportunities, emerging risks and the impacts of AI use, and to accelerate access to markets, including by removing barriers for small and medium enterprises (SMEs) and start-ups . To ensure uniform implementation across the Union and economies of scale, it is appropriate to establish common rules for the regulatory sandboxes’ implementation and a framework for cooperation between the relevant authorities involved in the supervision of the sandboxes. This Regulation should provide the legal basis for the use of personal data collected for other purposes for developing certain AI systems in the public interest within the AI regulatory sandbox, in line with Article 6(4) of Regulation (EU) 2016/679, and Article 6 of Regulation (EU) 2018/1725, and without prejudice to Article 4(2) of Directive (EU) 2016/680. Participants in the sandbox should ensure appropriate safeguards and cooperate with the competent authorities, including by following their guidance and acting expeditiously and in good faith to mitigate any high-risks to safety and fundamental rights that may arise during the development and experimentation in the sandbox. The conduct of the participants in the sandbox should be taken into account when competent authorities decide whether to impose an administrative fine under Article 83(2) of Regulation 2016/679 and Article 57 of Directive 2016/680.

(72)

(72)

## Amendment of the European Parliament

(72) The objectives of the regulatory sandboxes should be : for the establishing authorities to increase their understanding of technical developments, improve supervisory methods and provide guidance to AI systems developers and providers to achieve regulatory compliance with this Regulation or where relevant , other applicable Union and Member States legislation , as well as with the Charter of Fundamental Rights ; for the prospective providers to allow and facilitate the testing and development of innovative solutions related to AI systems in the pre-marketing phase to enhance legal certainty , to allow for more regulatory learning by establishing authorities in a controlled environment to develop better guidance and to identify possible future improvements of the legal framework through the ordinary legislative procedure. Any significant risks identified during the development and testing of such AI systems should result in immediate mitigation and, failing that, in the suspension of the development and testing process until such mitigation takes place . To ensure uniform implementation across the Union and economies of scale, it is appropriate to establish common rules for the regulatory sandboxes’ implementation and a framework for cooperation between the relevant authorities involved in the supervision of the sandboxes. Member States should ensure that regulatory sandboxes are widely available throughout the Union, while the participation should remain voluntary. It is especially important to ensure that SMEs and startups can easily access these sandboxes, are actively involved and participate in the development and testing of innovative AI systems, in order to be able to contribute with their knowhow and experience.

The objectives of the regulatory sandboxes should be to foster AI innovation by establishing a controlled experimentation and testing environment in the development and pre-marketing phase with a view to ensuring compliance of the innovative AI systems with this Regulation and other relevant Union and Member States legislation; to enhance legal certainty for innovators and the competent authorities ’ oversight and understanding of the opportunities, emerging risks and the impacts of AI use, and to accelerate access to markets, including by removing barriers for small and medium enterprises (SMEs) and start-ups . To ensure uniform implementation across the Union and economies of scale, it is appropriate to establish common rules for the regulatory sandboxes’ implementation and a framework for cooperation between the relevant authorities involved in the supervision of the sandboxes. This Regulation should provide the legal basis for the use of personal data collected for other purposes for developing certain AI systems in the public interest within the AI regulatory sandbox, in line with Article 6(4) of Regulation (EU) 2016/679, and Article 6 of Regulation (EU) 2018/1725, and without prejudice to Article 4(2) of Directive (EU) 2016/680. Participants in the sandbox should ensure appropriate safeguards and cooperate with the competent authorities, including by following their guidance and acting expeditiously and in good faith to mitigate any high-risks to safety and fundamental rights that may arise during the development and experimentation in the sandbox. The conduct of the participants in the sandbox should be taken into account when competent authorities decide whether to impose an administrative fine under Article 83(2) of Regulation 2016/679 and Article 57 of Directive 2016/680.

The objectives of the regulatory sandboxes should be : for the establishing authorities to increase their understanding of technical developments, improve supervisory methods and provide guidance to AI systems developers and providers to achieve regulatory compliance with this Regulation or where relevant , other applicable Union and Member States legislation , as well as with the Charter of Fundamental Rights ; for the prospective providers to allow and facilitate the testing and development of innovative solutions related to AI systems in the pre-marketing phase to enhance legal certainty , to allow for more regulatory learning by establishing authorities in a controlled environment to develop better guidance and to identify possible future improvements of the legal framework through the ordinary legislative procedure. Any significant risks identified during the development and testing of such AI systems should result in immediate mitigation and, failing that, in the suspension of the development and testing process until such mitigation takes place . To ensure uniform implementation across the Union and economies of scale, it is appropriate to establish common rules for the regulatory sandboxes’ implementation and a framework for cooperation between the relevant authorities involved in the supervision of the sandboxes. Member States should ensure that regulatory sandboxes are widely available throughout the Union, while the participation should remain voluntary. It is especially important to ensure that SMEs and startups can easily access these sandboxes, are actively involved and participate in the development and testing of innovative AI systems, in order to be able to contribute with their knowhow and experience.