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The Innovation Sandbox for Artificial Intelligence (AI) is a test environment for the implementation of AI projects. It is designed to promote responsible innovation by allowing public administration and participating organizations to collaborate closely on regulatory issues and enabling the use of new data sources.
New Sandbox Report Published
Why a Sandbox?
Due to the rapid pace of technological progress, the regulatory environment for AI technologies is often unclear for businesses, research institutions, and public administrations. As a result, uncertainties arise when implementing AI projects, which can hinder innovation. The Innovation Sandbox provides a testing environment where stakeholders can carry out AI initiatives within a clearly defined framework.
Start-ups, SMEs, large enterprises, and research institutes gain access to regulatory expertise and novel data sources through the sandbox, enabling them to foster innovation and support data-driven developments. Collaborative work within the sandbox also ensures effective knowledge transfer between participating organisations. All insights and results are shared publicly and serve as valuable input for shaping future legal frameworks.
Unlike many international approaches, the Innovation Sandbox for AI goes one step further: submitted projects are not only reviewed but also implemented in practice.
The goal is to promote responsible innovation that takes legal and ethical considerations into account, and to sustainably strengthen the use of AI in public administration, business, and research.
Goals
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- Provide regulatory clarity
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- Foster innovation and offer access to data
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- Ensure knowledge transfer
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- Deliver input for future legal frameworks
Phase I: 2022-2024
The first phase of the Innovation Sandbox for AI was successfully completed in March 2024. The insights gained from five AI projects have been published.
Phase II: Current Projects
Between mid-April and the end of May 2024, a project call was held, during which 24 organisations submitted AI project proposals. The Sandbox Steering Committee selected the projects based on the criteria listed below. The project team is currently working on six new sandbox projects, and the results will be published on an ongoing basis.
AI in Medical Documentation
In healthcare, documentation requirements generate a lot of administrative work. This project shows how speech recognition and large language models (LLMs) can reduce this workload. At the same time, it examines the legal framework – for example, with regard to data protection, professional secrecy and cloud use – and clarifies when such systems are considered medical devices. The aim is to develop concrete best practices for the safe and responsible use of AI in medical documentation.
AI in Medical Documentation – Between Potential and Regulation
EU Regulation of Autonomous Inspection Robots
For many Swiss robotics companies, access to the EU market is crucial – yet regulatory complexity is increasing. This project analyses key legislative frameworks such as the AI Act, the Machinery Regulation, the Cyber Resilience Act, and the Data Act, and demonstrates how companies can effectively navigate these various requirements. In addition, the project tests AI governance software designed to help firms efficiently implement technical, legal, and organisational standards – for example, those set out in ISO 42001.
Innovation-Sandbox – EU Regulation of Industrial Robots for Critical Infrastructure
AI Diagnostics in Ophthalmology
Diagnosing eye diseases is complex and requires specialist expertise. This project develops an AI-based approach for detecting diabetic retinopathy and investigates how AI can be reliably integrated into clinical routines. In addition to medical advancements, the project offers practical recommendations that can be transferred to other disciplines such as radiology or dermatology.
AI-Based Review of Building Applications
Building permit procedures are often lengthy and complex. In collaboration with a city administration, this project develops a prototype that uses multimodal AI models to automatically review building applications – analysing both textual documents and construction plans. This allows regulatory compliance to be assessed more efficiently. The results provide valuable input for municipalities and solution providers in driving digital transformation in the construction sector.
Combating Deepfakes in Identity Fraud
Deepfakes make it increasingly easy to forge identification documents and create fake identities. This project explores how organisations can securely and effectively share knowledge, signals, and data about fraud attempts. The aim is to detect fraudulent patterns early and prevent identity fraud involving generative AI – even across organisational boundaries.
Bridge Maintenance Using AI Sensors
Many bridges are decades old and still primarily inspected visually. This project tests AI-powered sensors that continuously monitor the vibration behaviour of bridges. This enables early detection of structural fatigue and allows for informed assessments of load-bearing capacity. The data-driven approach aims to extend the service life of bridges and make maintenance more efficient.
Sandbox Initiators
A wide and diverse group of institutions and individuals from public administration, research and the private sector have come together to launch the sandbox initiative. The aim is to strengthen Zurich as an innovation location for artificial intelligence. This initiative is receiving significant financial support from the Zurich Metropolitan Area.
The following institutions are part of the initiative:
- Division of Business and Economic Development within the Office for Economy of the Canton of Zurich
- Office for Economy, Canton of Schwyz
- Statistical Office Canton of Zurich
- Digital Administration and E-Government, Chancellery of the Canton of Zurich
- Zurich Metropolitan Area
- ETH AI Center
- UZH Center for Information Technology, Society, and Law (ITSL)
- UZH Digital Society Initiative (DSI)
- swissICT
- ZHAW entrepreneurship
- Lucerne University of Applied Sciences and Arts
Publications
In the Media
- AI, Start-Ups and Angel Investing: How Switzerland Can Unleash Its Potential, Innovation Zurich, 12th Augusut 2025
- AI Agents in Practice: How Companies Benefit From Autonomous Systems, Innovation Zurich, 5th August 2025
- When Quantum Computers Become Reality- Dr. Heike Riel in the AI Talk Podcast, Innovation Zurich, 23th July 2025
- AI and the Labor Market: How Artificial Intelligence Is Changing Jobs and Skills, Innovation Zurich, 16th July 2025
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Office for Economy – Business and Economic Development Division