The EU AI Regulations provides a framework for placing on the market and putting into service AI system in the EU. One of the biggest challenges most organisations will face will be how they can innovate and develop new AI systems while at the same time ensuring they are compliant with the regulations. But a what point do you know you are compliant with these new AI Systems? This can be challenging and could limit or slow down the development and deployment of such systems.
The EU does not want to limit or slow down such innovations and want organisations to continually research, develop and deploy new AI. To facilitate this the EU AI Regulations contains a structure under which this can be achieved.
Section or Title of EU AI Regulations contains Articles 53, 54, and 55 to support the development of new AI systems by the use of Sandboxes. We have already seen examples of these being introduced by the UK and Norwegian Data Protection Commissioners.
A Sandbox “provides a controlled environment that facilitates the development, testing and validation of innovative AI systems for a limited time before their placement on the market or putting into
service pursuant to a specific plan.“
Sandboxes are stand alone environments to allow the exploration and development of new AI solutions, which may or may not include some risky use of customer data or other potential AI outcomes which may not be allowed under the regulations. It becomes a controlled experiment lab for the AI team who are developing and testing a potential AI System and can do so under real world conditions. The Sandbox gives a “safe” environment for this experimental work.
The Sandbox are to be established by the Competent Authorities in each EU country. In Ireland the Competent Authority seems to be the Data Protection Commissioner, and this may be similar in other countries. As you can imagine, under the current wording of the EU AI Regulations this might present some challenges for the both the Competent Authority and also for the company looking to develop an AI solution. Firstly, does the Competent Authority need to provide sandboxes for all companies looking to develop AI, and each one of these companies may have several AI projects. This is a massive overhead for the Competent Authority to provide and resource. Secondly, will companies be willing to setup a self-contained environment, containing customer data, data insights, solutions with potential competitive advantage, etc in a Sandbox provided by the Competent Authority. The technical infrastructure used could be hosting many Sandboxes, with many competing companies using the same infrastructure at the same time. This is a big ask for the companies and the Competent Authority.
Let’s see what really happens regarding the implementation of the Sandboxes over the coming years, and how this will be defined in the final draft of the Regulations.
Article 54 defines additional requirements for the processing of personal data within the Sandbox.
- Personal Data being used is required, and can be fulfilled by processing anonymized, synthetic or other non-personal data. Even if it has been collected for other purposes.
- Continuous monitoring needed to identify any high risk to fundamental rights of the data subject, and response mechanism to mitigate those risks.
- Any personal data to be processed is in a functionally separate, isolated and protected data processing environment under the control of the participants and only authorised persons have access to that data.
- Any personal data processed are not be transmitted, transferred or otherwise accessed by other parties.
- Any processing of personal data does not lead to measures or decisions affecting the data subjects.
- All personal data is deleted once the participation in the sandbox is terminated or the personal data has reached the end of its retention period.
- Full documentation of what was done to the data, must be kept for 1 year after termination of Sandbox, and only to be used for accountability and documentation obligations.
- Documentation of the complete process and rationale behind the training, testing and validation of AI, along with test results as part of technical documentation. (see Annex IV)
- Short Summary of AI project, its objectives and expected results published on website of Competent Authorities
Based on the last bullet point the Competent Authority is required to write am annual report and submit this report to the EU AI Board. The report is to include details on the results of their scheme, good and bad practices, lessons learnt and recommendations on the setup and application of the Regulations within the Sandboxes.