1. First, describe a biological engineering application or tool you want to develop and why

It is AI-powered single-cell diagnostic platform for autoimmune diseases.

I have been thinking a lot now about the application of single cell analysis techniques and AI for diagnostics of neurodegenrative diseases. It is a known fact that neurodegenerative diseases are worsened by the harsh neuroinflammation that I would classify as a certain stage of autoimmunity, which makes it hard to treat disorders like Alzheimer’s, Parkinson’s, multiple sclerosis, or others. Therefore, I would like to work on the development of an AI tool that could identify and categorize rare cells in the tissue biopsies, investigated under Imaging Flow Cytometry - a promising technology, allowing to capture up to 2000 various parameters of a single cell along with its brightfield image. This tool would enable us to investigate more novel biomarkers of diseases and even quantitate them in real samples, serving as a very precise diagnostics tool.

  1. Relevant governance/policy goals:
Goal Ensuring transparency and reliability in AI decision-making Prevent harm. misuse, and leakage of patient data
Sub-goal 1 Develop clear standards of AI interpretability - visualization tools are criticial for depicting a thorough data analysis approach, and prior to making platform public experts in a specific field should check the reliability of an AI algorithm Implement strict data privacy and security protocols. Patient data should not be uploaded into an online platforms, but rather should be analysed using decentralized AI controlled by regulatory bodies and protected by multiple step verification for doctors to use it. Compliance with data protection laws should be ensured globally
Sub-goal 2 Require external validation and regulatory oversight. Regulatory bodies like FDA, EMA, CDC, WHO, or others should be invited to collaborate on the setting of protocols for AI validation and peer-review Establish ethical guidelines for AI in clinical decision-making. Final decision and diagnosis of patients’ conditions should not be made purely by AI and still interpeted and analysed by physicians using other tools. Develop protocols to prevent AI from reinforcing biases in disease classification, particularly in underrepresented populations.
  1. Governance actions:
Regulatory approval & AI transparency standards Federated learning for secure patient data sharing Public-private cncentive for AI bias auditing in healthcare
Purpose AI tools in diagnostics often function as "black boxes," making clinician interpretation difficult, so I propose a regulatory framework requiring AI transparency and a detailed model documentation before clinical use. AI models often require centralized datasets, raising privacy concerns with sensitive patient biopsy data, so I propose federated learning, a decentralized AI approach that enables multi-institutional collaboration by training models locally on hospital servers without sharing raw data. AI-driven diagnostic models risk bias if trained on non-representative patient data, so I propose a government-funded incentive program encouraging private companies and research labs to develop unbiased, diverse AI models for single-cell diagnostics.
Design Federal regulators, AI ethics committees, biomedical AI startups, and academic researchers would establish a certification process where AI-driven diagnostics must meet predefined reliability benchmarks, with companies and researchers required to provide a "model card" detailing predictions, biases, and limitations. Hospitals, AI researchers, data privacy regulators, and medical ethics boards would implement federated learning, allowing hospitals to train AI models on local datasets while sharing only model updates, ensuring compliance with data protection policies like GDPR and HIPAA. NIH, private biotech firms, AI startups, and healthcare policymakers would create a system where companies receive grant funding or tax incentives for meeting diversity benchmarks, with independent third-party bias auditors evaluating AI models before deployment.
Assumption Explainability requirements will not significantly reduce AI performance, and regulators can keep pace with rapid AI advancements. Federated learning models will achieve comparable or better performance than centralized training, hospitals have the necessary technical infrastructure to support implementation. Companies will voluntarily participate if given proper incentives and independent bias audits will be accurate and objective.
Risks of failure and success Overly strict regulations could slow innovation and prevent promising tools from reaching patients, while enforced transparency without proper clinician training may lead to misinterpretation and misdiagnosis. Technical complexity could exclude smaller hospitals, creating an unequal AI development landscape, while widespread adoption may lead to legal challenges in cross-border collaborations due to differing privacy laws. Companies might manipulate diversity metrics without genuinely reducing bias, while mandatory audits could disproportionately burden small AI startups, giving larger tech companies a competitive advantage.
  1. Scoring of governance actions

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  1. Discussing the scoring and potential trade-offs

Based on the scoring, I would prioritize a combination of Regulatory Approval & AI Transparency Standards and Federated Learning for Secure Patient Data Sharing, while incorporating elements of Public-Private Incentives for AI Bias Auditing where feasible. The reason for this choice is that transparency and privacy are the most immediate ethical concerns in AI-driven diagnostics, especially for neurodegenerative diseases, where accurate and interpretable results can significantly impact patient care. At the same time, ensuring that patient data remains secure while enabling large-scale AI training is critical for both ethical and practical reasons.

The trade-off here is mainly between speed of innovation vs. regulatory oversight. Strict transparency and explainability requirements might slow down the deployment of cutting-edge AI models, but without them, the medical community may struggle to trust or validate these tools, leading to hesitancy in clinical adoption. Federated learning helps mitigate the privacy risks of centralized data storage, but it assumes hospitals and research institutions have the technical infrastructure to implement it effectively, which may not always be the case. The bias auditing incentive program is valuable, but making it mandatory too early could disproportionately burden startups and smaller research groups, potentially reinforcing the dominance of large biotech and AI firms.

For implementation, I would address this recommendation to a mix of national and international regulatory bodies, AI ethics committees, and major research institutions. Specifically, agencies like the FDA, EMA, and WHO, alongside organizations like the NIH, leading AI consortia, and top-tier hospitals, would need to collaborate on defining transparency standards and promoting federated learning strategies. The private sector, especially AI-driven biotech startups and major tech firms entering healthcare, should be incentivized to participate through structured grants and regulatory advantages for models that meet transparency and bias reduction benchmarks.

The biggest uncertainty is how well federated learning will scale across institutions with different technical capabilities and legal frameworks. It also remains to be seen how transparent AI models can become without compromising predictive power. However, prioritizing these actions ensures a balance between scientific progress, patient safety, and equitable access to AI-driven diagnostics, making them the most impactful governance strategies moving forward.