AI technical sandbox

Details of outcome

Ofgem has decided to proceed with establishing an AI technical sandbox as a 12-month pilot, targeting commencement in late Autumn 2026, to support the safe and responsible adoption of artificial intelligence in the energy sector.

The sandbox will provide a structured, regulator-led mechanism for participants to test defined AI use cases in a controlled testing environment. The pilot is intended to generate structured and practical evidence on AI system behaviour, potential risks and regulatory considerations, based on testing in controlled environments. This will help to inform future regulatory approaches while supporting consumer protection and system resilience.

We received 32 responses from stakeholders across the energy sector, including licensees, market participants, technology providers, academic institutions and representative organisations. Respondents expressed strong support for the creation of an AI technical sandbox and recognised its value in enabling more structured and realistic testing of AI in a highly regulated and safety-critical context.

Feedback focused primarily on implementation detail rather than the overall case for the sandbox. Key themes included data access and the use of synthetic data, governance and assurance arrangements, infrastructure and delivery approach, and the need for clear pathways from testing to implementation.

In response, Ofgem will proceed broadly as proposed, while refining participation guidance, assurance expectations and delivery arrangements to reflect stakeholder input.

Further details on the pilot design, participation process and next steps are set out in the full decision document.

Read the full outcome

Original consultation

Consultation description

This consultation builds on our call for input (CFI) on the AI technical sandbox, which sought views from stakeholders across the energy sector including participants, technology developers and providers, academia, and consumer groups. It sets out our plan for an initial 12-month pilot of the AI technical sandbox, including who can participate, how use cases will be selected, and the governance arrangements that will underpin the pilot.

The consultation also explains how the AI technical sandbox will align with Ofgem’s wider AI and innovation initiatives.

We invite all interested parties to review our proposals and provide feedback. Your insights will help ensure the AI technical sandbox delivers meaningful benefits for the energy sector, consumers, and wider society.

Who should respond

We would like to hear from: 

• energy sector companies using or exploring AI
• technology developers and AI providers
• data providers and digital infrastructure specialists
• consumer groups and charities
• think tanks and academic institutions
• anyone working on AI policy or regulation