SANDBOX Act

The SANDBOX Act would establish a federal regulatory sandbox program for artificial intelligence, administered by the White House Office of Science and Technology Policy. Under this program, AI companies and developers could apply for temporary waivers or modifications of federal regulations to test and deploy AI products and services on a limited basis. Approved participants would receive exemptions from federal enforcement of certain rules for up to two years, though they would remain subject to private consumer lawsuits and would need to report any incidents of harm to health, safety, or consumer protection within 72 hours.

Proponents argue the bill would accelerate AI innovation and help the United States compete globally, particularly with China. Supporters contend that current regulations are outdated and unnecessarily restrictive for emerging technologies. However, critics raise significant concerns about consumer protection, arguing that the broad definition of AI and narrow definitions of what constitutes reportable harm could leave workers and consumers vulnerable. Critics worry that companies could use waivers to avoid regulations on issues like algorithmic discrimination, worker surveillance, and unfair business practices. The bill would require regular reporting to Congress on which regulations were waived, potentially informing future policy decisions.