A call to action5 AI sandboxes become a meaningful lever for India’s AI ecosystem through coordinated action by all major stakeholder groups. As India seeks to position itself as a global AI powerhouse, the establishment of AI sandboxes becomes critical to accelerating responsible and inclusive AI innovation. The following actions outline the roles and responsibilities of major stakeholders in establishing AI sandboxes across the country. Government and policy-makers: –Encourage the launch of a few AI sandboxes – at the national level and one or more state- level, sector-specific initiatives – within a 12–14-month horizon, focused on priority areas identified in this paper. States may consider selecting distinct sectors aligned with their economic priorities to avoid duplication and ensure depth of experimentation. This approach can help optimize expert resources and foster a diverse portfolio of pilots across the country. –Promote AI sandbox pilots through national programmes such as the IndiaAI Mission or DPI efforts. It is essential to ensure the benefits of sandbox-led AI innovation reach citizens. Government agencies and sandbox designs should prioritize accessibility and inclusion to maximize public value. –Develop model AI sandbox policies and data- sharing protocols in collaboration with NITI Aayog, MeitY and state governments. –Invest in DPI for AI – including compute and AI-ready datasets – to reduce the cost of innovation and incentivize the creation of vernacular datasets and language tools. –Appoint a nodal agency (such as Digital India Corporation) to standardize sandbox governance and coordinate between central and state deployments. Facilitate a national registry of AI sandboxes to promote interoperability, documentation of learnings and cross-sector knowledge transfer. –Consider creating a pool of experts by calling upon industry experts and academicians to provide tactical guidance and support to participants throughout the sandbox life cycle and during the transition to scaling post cessation of the sandbox. –Establish formal feedback mechanisms to integrate sandbox learnings into national AI strategy, regulatory frameworks and sectoral standards. Shaping the AI Sandbox Ecosystem for the Intelligent Age 21

Shaping the AI Sandbox Ecosystem for the Intelligent Age 2025