This direction focuses on breakthrough developments in the fields of tensor networks and deep learning. We investigating and designing a new generation of AI systems, especially deep neural networks and associated learning algorithms and developing their real-life applications in bioengineering, optimization problems, e.g., optimal portfolio selection. We apply deep neural networks for early diagnosis of some diseases like Alzheimer, schizophrenia, autism and early detection of breast cancer and skin cancer. We also apply AI and ML for novel brain computer interfaces, human computer interactions and smart systems for detection of human emotions, fatigue, various mental states.