In November 2025, the European Commission published a legislative package titled the “Digital Omnibus,” including a proposal to simplify the implementation of the Artificial Intelligence Act (the Digital Omnibus on AI). The initiative aims to ensure a more practical, proportionate, and consistent application of AI regulation across the European Union, while maintaining a high level of protection for safety, fundamental rights, and trust.
The Digital Omnibus introduces targeted measures to reduce administrative burden, including a more flexible timeline for implementing high-risk AI requirements, simplified compliance documentation, and more proportionate obligations for small and medium-sized enterprises as well as small mid-cap companies. At the same time, the approach to AI literacy is strengthened, with a focus on practical implementation and real-world use cases.
A key component of the Digital Omnibus is the strengthened role of regulatory sandboxes and real-world testing. Sandboxes are positioned as a practical tool for the safe testing of AI solutions, early cooperation with regulators, and clarification of compliance requirements prior to broader deployment. They can help companies and public sector organizations reduce regulatory risks while fostering responsible innovation. The European Commission also foresees the establishment of an EU-level regulatory sandbox in the coming years to support cross-border testing of AI solutions.
In assessing the initial national position of the Republic of Latvia prepared by the Ministry of Smart Administration and Regional Development, the Latvian Artificial Intelligence Association (MILA) emphasized in its proposals the importance of regulatory sandboxes as a central instrument for the practical implementation of the Artificial Intelligence Act. MILA called for promoting the use of sandboxes as a compliance support mechanism, ensuring that results obtained in sandboxes can be used as part of compliance evidence, and strengthening early and structured dialogue between companies, the public sector, and supervisory authorities.
MILA will continue to monitor the progress of the Digital Omnibus at the EU level, inform its members about developments and opportunities related to regulatory sandboxes in Latvia and the European Union, and encourage the industry to engage early in dialogue on the testing and deployment of AI solutions.
