Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
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141. To ask the Minister for Enterprise, Trade and Employment if he will provide an update on the establishment of Ireland’s AI regulatory sandbox in accordance with the provisions of the EU Artificial Intelligence (AI) Act; and if he will make a statement on the matter. [22542/25]

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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As the Deputy will be aware, the EU Artificial Intelligence Act (Regulation (EU) 2024/1689) entered into force in August 2024 and provides a harmonised regulatory framework for AI systems developed or deployed in the EU. It is designed to provide a high level of protection to people’s health, safety, and fundamental rights and to simultaneously promote the adoption of human-centric, trustworthy AI. Its provisions will start to apply, in a phased manner, over the period to August 2027.

My department is leading across Government on the national implementation of the AI Act and my officials are working closely with colleagues in other departments to devise the optimal configuration of national competent authorities for the Act to ensure comprehensive, robust and efficient implementation in Ireland.

In March, the government approved my recommendation that Ireland adopt a distributed model of implementation, complemented by a designated lead authority to provide coordination and a number of centralised functions. This approach will allow us to leverage the deep knowledge and expertise of our established sectoral regulators, while simplifying compliance for businesses, who will primarily engage with regulators with whom they already have established relationships.

The government also approved an initial list of eight public bodies as competent authorities, responsible for implementing and enforcing the AI Act within their respective sectors. This decision builds on the identification of an initial list of nine public bodies as fundamental rights authorities under the AI Act in November 2024.

The AI Act introduces AI regulatory sandboxes as a key mechanism to foster innovation. An AI regulatory sandbox is a controlled framework set up by a competent authority which offers providers, or prospective providers, of AI systems the possibility to develop, train, validate and test, where appropriate in real-world conditions, an innovative AI system, in accordance with a sandbox plan for a limited time under regulatory supervision.

The Act stipulates that member states' competent authorities must establish, and have operational, an AI regulatory sandbox by August 2026.

To support member states in this regard, and to ensure a harmonised approach across the EU, the European Commission is required by the AI Act to adopt implementing acts for sandboxes, setting out principles regarding participants selection criteria, application process, participation procedures and the general terms and conditions applicable to participants; first drafts are expected in Q3 2025.

In addition, the European AI Board has established a dedicated subgroup to support and expediate the role out of AI regulatory sandboxes across the EU. My officials are actively participating on the subgroup, and contributing to the drafting process of the implementing acts.

The Programme for Government 2025 – Securing Ireland's Future – contains a strong commitment to ensuring that Ireland is a leader in the digital economy and in artificial intelligence. It positions AI as a cornerstone of Ireland’s future development and outlines a comprehensive approach to technological transformation across sectors, public and private.

Ireland's National AI Strategy – AI Here for Good – Refresh 2024, aims to establish Ireland as a global leader in ethical and innovative AI, and outlines an ambitious vision for the country's future with respect to the governance, innovation, and adoption of artificial intelligence. One of its strategic actions is to establish an AI regulatory sandbox to foster innovation in AI; to provide legal certainty for investors; and to facilitate regulatory learning.

A national AI regulatory sandbox will play a pivotal role in fostering responsible AI by balancing innovation with ethical and regulatory compliance. It will offer Irish businesses a controlled environment to innovate and test new AI technologies, products, and services under regulatory supervision, and will facilitate compliance with regulations before they are placed on the market. This will be particularly beneficial for SMEs and startups, which often lack regulatory compliance resources and expertise.

I would like to assure the Deputy that the Government is fully committed to the comprehensive and timely implementation of all aspects of the AI Act, including the establishment of the national AI regulatory sandbox. My officials are currently assessing, in conjunction with their colleagues from other Government departments and public authorities, the optimal approach for establishing the national AI regulatory sandbox, and the necessary supports to enable its effective implementation.