I was debating with a friend about this! Is Neo genetically different from others plugged in the Matrix, as in genetically engineered to be the 'One'? Or is he a normal human and it's all software that gives him powers.
According to the Architect, Neo is engineered but not genetically:
The function of the One is now to return to the Source, allowing a temporary dissemination of the code you carry, reinserting the prime program.
Your 5 predecessors were, by design, based on a similar predication - a contingent affirmation that was meant to create a profound attachment to the rest of your species, facilitating the function of the One.
The Matrix Reloaded
He is designed to perform the function of the One, which includes a temporary dissemination of the code carried by the One. Genes are a type of code, but the Architect is probably referring to machine code since Neo's code is disseminated when he returns to the Source (a machine).
In other words, he's a normal human who has been given special code (software) by the machines to carry out the function of the One.