arXiv:2506.23334v2 Announce Type: replace-cross Abstract: Federated learning (FL) has emerged as a promising paradigm for collaboratively training deep learning models across institutions without exchanging sensitive medical data. However, its effectiveness is often hindered by limited data availability and non-independent, identically distributed data across participating clients, which can degrade model performance and generalization. To address these challenges, we propose a generative AI based data augmentation framework that integrates synthetic image sharing into the federated training process for breast cancer diagnosis via ultrasound images. Specifically, we train two simple class-specific Deep Convolutional Generative Adversarial Networks: one for benign and one for malignant lesions. We then simulate a realistic FL setting using three publicly available breast ultrasound image datasets: BUSI, BUS-BRA, and UDIAT. FedAvg and FedProx are adopted as baseline FL algorithms. Experimental results show that incorporating a suitable number of synthetic images improved the average AUC from 0.9206 to 0.9237 for FedAvg and from 0.9429 to 0.9538 for FedProx. We also note that excessive use of synthetic data reduced performance, underscoring the importance of maintaining a balanced ratio of real and synthetic samples. Our findings highlight the potential of generative AI based data augmentation to enhance FL results in the breast ultrasound image classification task.