Sarcouncil Journal of Engineering and Computer Sciences

Abstract: This article explores the integration of Artificial Intelligence within microservices architectures for regulated industries, proposing a framework that balances intelligent decision-making with compliance requirements. It examines how distributed architectures create opportunities for embedding AI directly within service components while maintaining regulatory alignment. The architectural framework leverages event-driven patterns, containerization, and service mesh technologies to enable real-time inference with appropriate governance. Key compliance mechanisms, including model explainability, traceability through versioned inputs/outputs, privacy regulation alignment, and a comprehensive auditing framework, are detailed. Through case studies in clinical trials, insurance underwriting, and financial fraud detection, the article identifies common implementation patterns that support regulatory requirements across domains. Looking forward, it anticipates emerging standards for AI governance in distributed systems, evolving developer roles that span technical and ethical concerns, research opportunities in explainable AI for microservices, and technical roadmaps for compliance-aware decision intelligence. The convergence of microservices and AI represents a maturing engineering landscape where systems deliver both intelligence and accountability.