(Reuters) -Republican U.S. Senator Ted Cruz introduced a bill on Wednesday that would let artificial intelligence companies apply for exemptions to federal regulation to help them experiment in developing new technology.

Cruz leads the Senate Commerce Committee, which is scheduled to hold a subcommittee hearing on Wednesday about ways Congress can lower regulatory hurdles for the tech industry to give U.S. companies a boost in competing with China.

The sandbox bill "embraces our nation's entrepreneurial spirit and gives AI developers the room to create while still mitigating any health or consumer risks," Cruz said in a statement.

If passed by Congress, the bill would allow agencies that oversee federal regulations to consider applications from companies to be exempt from regulations for two years at a time, and require companies to outline the potential safety and financial risks and how they would mitigate them.

(Reporting by Jody Godoy in New York)