Toronto can become a leader in urban problem-solving by adopting a comprehensive regulatory sandbox system that allows the City of Toronto to temporarily suspend or relax specific bylaws and regulations within a defined geographic area to test new ideas. This approach creates a “safe space” for innovation, enabling the city to gather real-world data on new technologies without the immediate need for permanent legislative changes.
Toronto has used a limited regulatory sandbox within its Transportation Innovation Zones at Exhibition Place to test automated snow-clearing and delivery robots. Unfortunately, the concept hasn’t expanded to other sectors.
The current “all-or-nothing” approach to regulation often forces the City to choose between total bans or full-scale adoption, both of which can be detrimental to long-term growth. By adopting a regulatory sandbox model across more sectors, Toronto can create flexible environments for a wider range of high-impact solutions. This could include testing AI-powered traffic lights to reduce transit congestion, implementing variable lane usage for overnight deliveries and rush-hour traffic, or piloting digital parking signs that adjust based on weather and time of day. Beyond technology, sandboxes can be used to test policy reforms such as streamlined business licensing for street vendors.
Expanding regulatory sandboxes would provide essential support to the local entrepreneurs and activists who are already dedicating their time to solving the city’s most pressing challenges. Instead of facing immediate bureaucratic barriers, these innovators would have the opportunity to demonstrate the viability of their ideas under municipal supervision. This move would signal that Toronto is open for business and serious about fostering a culture of innovation that prioritizes efficiency and responsiveness over rigid, outdated rules.