An AI sandbox is a controlled environment designed for the safe development, testing, and evaluation of artificial intelligence technologies. Often overseen by regulatory bodies, it allows organizations to experiment with new AI systems, algorithms, or applications without exposing real-world systems or sensitive data to potential risks. The sandbox provides a secure space to identify vulnerabilities, ensure compliance with regulations, and assess the ethical implications of AI deployments. By simulating real-world conditions while maintaining strict oversight, AI sandboxes help foster innovation while minimizing unintended consequences. They are commonly used in sectors like finance, healthcare, and cybersecurity, where both regulatory compliance and technological advancement are critical.