meta_id 3421213

On August 20, 2026, Finland's Legislative Assessment Council (Lainsäädännön arviointineuvosto) issued an opinion to the Ministry of Employment and the Economy regarding a government proposal draft to amend legislation on the supervision of certain artificial intelligence (AI) systems and the Financial Supervision Act. The Legislative Assessment Council found the proposal's impact assessment to be structurally comprehensive but requiring substantial reinforcement. The council identified gaps in assessing effects on businesses and individuals, as well as data protection and fundamental rights impacts. The proposal introduces several key measures: establishment of an AI regulatory sandbox environment, testing of high-risk AI systems in real-world conditions, continued processing of personal data within the sandbox, and mandatory reporting requirements for high-risk AI systems related to critical infrastructure. The council recommended concretising business impacts by providing detailed descriptions of potential sandbox users, workload imposed on enterprises, and sandbox benefits. It also advised examining effects related to fees, demand, capacity, and application prioritisation more thoroughly. The administrative burden on businesses from critical infrastructure reporting requirements requires deeper evaluation. The assessment should more clearly distinguish impacts directly arising from EU AI regulation from those resulting from national implementation choices. Additionally, the proposal should address how ongoing EU-level regulatory development may affect national implementation and future amendment needs. The council recommended strengthening evaluation of regulatory authority impacts by describing how new responsibilities can be managed within existing budget constraints without compromising other functions. Effects on individuals, fundamental rights, human rights, and data protection—particularly regarding real-world testing and personal data processing—require further specification. The Ministry of Employment and the Economy submitted the draft proposal on July 10, 2026, with a revised version on July 29, 2026. The council recommends incorporating its recommendations before the government formally presents the proposal.