AI is evolving at a very rapid pace and the regulatory environment has struggled to keep up. The Spanish Ministry of Economic Affairs and Digital Transformation has published a draft Bill to create a regulatory sandbox for artificial intelligence (AI). The AI sandbox aims to provide a controlled environment for the development of new AI technologies. It promotes innovation – innovators and businesses can test their systems with reduced regulatory constraints. It also mitigates the risks posed to the security, health, and fundamental rights of the users until the proposed EU AI Act enters into force.
The draft Bill sets out, among others, the eligibility requirements of the AI sandbox and the assessment of AI systems in the context of the sandbox.
Eligibility requirements
Spain-established AI system providers and users will be eligible to participate in the AI sandbox.
The sandbox will only be opened to AI systems that may pose a risk to the security, health, and fundamental rights of their users. This includes high-risk AI systems, and general-purpose and generative AI such as ChatGPT.
The number of participants to the sandbox will be limited in each call for submission. Accordingly, the most innovative, complex, socially impactful, and mature AI systems will have a better chance of being selected for the sandbox.
Assessment of AI systems
Sandbox participants will be required to implement safeguards on their AI systems to mitigate any risks to users. These safeguards are very akin to those imposed on high-risk AI systems by the AI Act.
For example, participants will have to implement a risk management system in relation to the AI systems, keep records of the logs generated by the AI system, and design and develop the AI systems in a transparent manner for users.
After implementing such safeguards, participants will have to self-assess their AI systems to confirm that the requirements have been duly fulfilled. The self-assessment will need to be approved by the competent authority to successfully conclude the AI sandbox. In Spain, the competent authority will be the State Secretary for Digitalisation and Artificial Intelligence (under the Ministry of Economic Affairs and Digital Transformation).
Looking ahead
The draft Bill has been proposed in the form of a Royal Decree in Spain. Accordingly, it can be approved by the Government, without going through the ordinary legislative process in the Parliament.
However, it is unclear when this draft Bill will see the light, considering that Spain's general elections will be held in July.
If you have any questions about the draft Bill, including the proposed eligibility requirements, let us know. Stay tuned for further updates as we see them!
Artificial Intelligence is a priority for Spain and for Europe. The regulatory sandbox piloted by Spain, aims to create the conditions for a smooth implementation of the future regulatory rules applying on the field. The sandbox will facilitate the testing of specific technical solutions and compliance procedures while at the same time supporting companies and especially SMEs to avoid uncertainty and unnecessary burdens.
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