Definition
A controlled, government-supervised space where companies can test new AI products under looser rules and closer regulatory oversight, before those products face full legal requirements. Thailand's proposed APEC AI Governance Sandbox would let this operate across multiple countries in the Asia-Pacific region rather than just one.
Why it matters
Sandboxes let companies innovate with reduced legal risk while giving regulators early visibility — a growing tool multinational firms can use to pilot AI products in new markets ahead of formal law.