REGULATORY SANDBOXES UNDER THE DRAFT EU ARTIFICIAL INTELLIGENCE ACT: AN OPPORTUNITY FOR SMES?

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InterEULawEast : Journal for the international and european law, economics and market integrations, Vol. 9 No. 2, 2022.

Original scientific paper

https://doi.org/10.22598/iele.2022.9.2.3

REGULATORY SANDBOXES UNDER THE DRAFT EU ARTIFICIAL INTELLIGENCE ACT: AN OPPORTUNITY FOR SMES?

Ana Pošćić orcid.org/0000-0001-7315-0630 ; University of Rijeka, Faculty of Law, Rijeka, Croatia & Inter-University Centre of Excellence Opatija, Croatia
Adrijana Martinović orcid.org/0000-0002-5182-6393 ; University of Rijeka, Faculty of Law, Rijeka, Croatia & Inter-University Centre of Excellence Opatija, Croatia

Full text: english pdf 561 Kb

page 71-117

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APA 6th Edition

Pošćić, A. & Martinović, A. (2022). REGULATORY SANDBOXES UNDER THE DRAFT EU ARTIFICIAL INTELLIGENCE ACT: AN OPPORTUNITY FOR SMES?. InterEULawEast, 9 (2), 71-117. https://doi.org/10.22598/iele.2022.9.2.3

MLA 8th Edition

Pošćić, Ana and Adrijana Martinović. "REGULATORY SANDBOXES UNDER THE DRAFT EU ARTIFICIAL INTELLIGENCE ACT: AN OPPORTUNITY FOR SMES?." InterEULawEast, vol. 9, no. 2, 2022, pp. 71-117. https://doi.org/10.22598/iele.2022.9.2.3. Accessed 8 Nov. 2024.

Chicago 17th Edition

Pošćić, Ana and Adrijana Martinović. "REGULATORY SANDBOXES UNDER THE DRAFT EU ARTIFICIAL INTELLIGENCE ACT: AN OPPORTUNITY FOR SMES?." InterEULawEast 9, no. 2 (2022): 71-117. https://doi.org/10.22598/iele.2022.9.2.3

Harvard

Pošćić, A., and Martinović, A. (2022). 'REGULATORY SANDBOXES UNDER THE DRAFT EU ARTIFICIAL INTELLIGENCE ACT: AN OPPORTUNITY FOR SMES?', InterEULawEast, 9(2), pp. 71-117. https://doi.org/10.22598/iele.2022.9.2.3

Vancouver

Pošćić A, Martinović A. REGULATORY SANDBOXES UNDER THE DRAFT EU ARTIFICIAL INTELLIGENCE ACT: AN OPPORTUNITY FOR SMES?. InterEULawEast [Internet]. 2022 [cited 2024 November 08];9(2):71-117. https://doi.org/10.22598/iele.2022.9.2.3

IEEE

A. Pošćić and A. Martinović, "REGULATORY SANDBOXES UNDER THE DRAFT EU ARTIFICIAL INTELLIGENCE ACT: AN OPPORTUNITY FOR SMES?", InterEULawEast, vol.9, no. 2, pp. 71-117, 2022. [Online]. https://doi.org/10.22598/iele.2022.9.2.3

Abstract

More than a year after the European Commission submitted the Proposal for the Artificial Intelligence Act (AI Act), the EU institutions are still working on adopting this groundbreaking regulation. The Draft AI Act contains a uniform set of horizontal rules for the development, marketing, and use of AI systems in conformity with the Union values, applying the proportionate risk-based approach. The aim is to avoid regulatory friction and fragmentation and to create a well-functioning internal market for AI systems and technologies. However, the policy and regulatory choices should not obstruct the innovative potential and transformative impact of AI systems and technologies on the society and economy. The Draft AI Act, therefore, introduces AI regulatory sandboxes, as a testing ground for deciding what to regulate and how. This is a novel regulatory approach, fostering innovation, development, and testing of AI systems under strict regulatory oversight before these systems are placed on the market. The proposed solution from the Draft AI Act has caused both excitement and criticism in the legal doctrine and industry. This paper will explore the benefits and challenges of AI regulatory sandboxes. The draft provisions will be critically evaluated, drawing from the experience in the FinTech industry, especially considering the effect on SMEs. The EU’s ambition is to set up a robust and disruption-resilient, yet flexible, innovation-friendly, and future-proof regulatory framework for AI, and the intuitive appeal of AI regulatory sandboxes for both regulators and innovators deserves an in-depth examination.

Keywords

Artificial Intelligence Act; regulatory sandboxes; SMEs

Hrčak ID:

293335

URI

https://hrcak.srce.hr/293335

Publication date:

31.1.2023.

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