Article 58 sets out the conditions for participation in an AI regulatory sandbox. NCAs select participants based on a transparent and fair selection process, prioritising SMEs, start-ups, and systems with a high potential to contribute to the AI regulatory environment.

Providers must apply to the NCA with a sandbox plan explaining the innovative AI system and planned tests
The NCA and provider agree on a sandbox plan with specific objectives and milestones
Personal data processing in sandboxes requires a GDPR legal basis -- Article 59 provides guidance
Sandbox participation typically lasts 12 months, extendable for an additional 12 months
Article 58(4): participants acting in good faith per NCA guidance are not fined for infringements during the sandbox