Q&A: Sandbox by the Ministry of Digital Transformation of Ukraine

Today, artificial intelligence is rapidly transforming every sector, and the public sector is no exception. Many countries are actively fostering the development of technology, and Ukraine is no different. We spoke with Olha Osinska from the Ministry of Digital Transformation of Ukraine about the Sandbox project.

Сan you explain what Sandbox is?

Sandbox is an international tool that allows companies to develop high-tech products in a state controlled environment. In many countries around the world, the regulatory sandbox format operates, where the state creates a community within which companies can test new products, technologies or business models in real, but somewhat limited conditions. Companies can pilot their innovations with temporary relaxations of the rules under state supervision, but with strict time limits. At the same time, the Ukrainian Sandbox was created primarily to test the application of AI / blockchain technologies in solutions for various industries, and based on this experience to create a favorable legal framework.

Could you tell us a bit more about the main idea or purpose behind this Sandbox?

Sandbox is a joint project of the Ministry of Digital Transformation of Ukraine and the Ukrainian Startup Fund. The goal of the project is to provide companies with information support, consultations and technical assistance to increase their competitiveness and promote the implementation of high-tech solutions. In other words, the key task of Sandbox is to help developers in the fields of AI and blockchain create high-quality products in the absence of special legislation. Participants receive free audits, consultations and recommendations for improving products from legal and technology experts. The strategic goal is that the state, based on the experience of testing such products and the needs of startups, can form effective legislation for the development of innovations, as well as find and eliminate gaps in the existing legal framework.

Who is the target audience and how can someone get involved in this project?

Ukrainian companies that create solutions using AI or blockchain technologies for the digital economy, public services, healthcare, education and science, agro-industry, infrastructure, public administration, national security, defense and military needs can become participants in Sandbox. We also plan to open the opportunity for participation in the Sandbox for individual entrepreneurs.

What are the key areas of expertise or focus among the experts participating?

A wide range of expertise is available to participants in three verticals: legal, technical and business. Currently, the Sandbox offers:

• general legal audit and IP audit of the product
• audit on the protection and processing of personal data
• expertise using the HUDERIA methodology, which allows you to assess the product from the point of view of its impact on fundamental human rights
• audit for compliance with AI solutions AI Ac
• complex technological AI / blockchain expertise
• assessment of the startup’s business model or analysis of its financial component

The project’s expert team includes about two dozen highly qualified specialists with extensive experience in the fields of law, technology and business consulting.

What are the key areas of expertise or focus among the experts participating?

A wide range of expertise is available to participants in three verticals: legal, technical and business. Currently, the Sandbox offers:

• general legal audit and IP audit of the product
• audit on the protection and processing of personal data
• expertise using the HUDERIA methodology, which allows you to assess the product from the point of view of its impact on fundamental human rights
• audit for compliance with AI solutions AI Ac
• complex technological AI / blockchain expertise
• assessment of the startup’s business model or analysis of its financial component

The project’s expert team includes about two dozen highly qualified specialists with extensive experience in the fields of law, technology and business consulting.

What are your expectations for the Sandbox project, and could you share what the next steps or plans are?

The Sandbox project operates in accordance with the resolution of the Cabinet of Ministers of Ukraine and is an experiment lasting 2 years – until the end of October 2026. Next, a report will be prepared for the government with proposals for changes to the legislation, as well as recommendations for developers of systems with AI or blockchain technologies, state authorities and other stakeholders. In general, Sandbox has the potential to become a permanent ecosystem tool.

Sandbox allows the state to receive unique valuable insights from the experience of companies during testing their products. Based on this, relevant legislation can be created. Additionally, the state receives new technological solutions to improve the work of government agencies (B2G) and infrastructure development through products in the B2B and B2C sectors. The main advantage is that the state can observe and analyze in real time how companies adapt to future requirements. And this will become the basis for creating modern Ukrainian legislation in the field of innovation.

For startups, win – in free audits, consultations and recommendations from top industry experts. After going through Sandbox, a startup can grow to the level of a mature product and as a result attract investments and enter international markets.

How do you measure the success of this Sandbox, and what impact do you hope it will have?

First of all, we measure the impact of the project on the participating companies, in particular, how Sandbox affected the attraction of investments by startups, as well as changes in the level of technology readiness (TRL) and how much the startups themselves assess the impact of Sandbox on improving their product. Another indicator will be the number of solutions that project participants will implement in government services, as this is one of the sub-goals of the project. By the end of the Sandbox experiment, we plan to involve 50+ companies.

Participation in the Sandbox significantly affects the development of the Ukrainian startup ecosystem. Why? Because it provides expert support and feedback for product improvement, increases trust in it among investors and partners, reduces risks due to compliance and regulatory recommendations, which accelerates business scaling and development.

For more information about the Sandbox project, visit the Ministry of Digital Transformation of Ukraine: https://thedigital.gov.ua/news/technologies/bezoplatniy-audit-i-konsultatsii-dlya-innovatsiynikh-startapiv-zapuskaemo-sandbox-dlya-testuvannya-shi-ta-blokcheyn-tekhnologiy