How to put the quantum advantage to work for your company

By: Bill Genovese and Guy Siviour

Generative AI is sparking excitement and investment from companies around the world. Yet, as enterprises prepare for AI everywhere, many organizations may overlook an innovation that promises to impact the global marketplace even more dramatically.

Quantum computing and technology is expected to revolutionize how most companies manage their businesses.¹ We call this the quantum advantage.

When fully functional and more reliable, quantum computers and technology will perform tasks and solve complex statistical problems once considered impossible.² Future applications range from deep hedging analysis³ in banking and financial services to accelerating pharmaceutical research and development.⁴

A methodology for assessing quantum readiness

Although widespread use of quantum computing and technology is likely years away, now’s the time to get quantum ready. A key part of this process is identifying potential use cases for the technology.

The Quantum Services and Consulting Team at Kyndryl has developed a methodology to help determine if companies in selected industries would benefit from quantum computing and technology sooner rather than later. We’ve divided the framework into three main categories based on quantum’s key advantages:

• Quantum advantage A: Quantum computers offer compute power that is orders of magnitude greater than classical computers
• Quantum advantage B: Quantum technology can solve problems that can never be resolved with classical technology
• Quantum advantage C: Quantum computers can enable real business results for optimization-based problems

Within each quantum advantage category, you can use quantum technology to solve, achieve or improve seven primary outcomes:

1. Conventionally insoluble: Applies quantum algorithms to perform complex calculations and address challenges that classical computers struggle to execute
2. Regulatory compliance: Uses advanced data processing and analytics to detect anomalies and identify potential compliance breaches more efficiently
3. Competitive advantage: Helps streamline research and development, optimize operations and accelerate problem-solving to set companies apart in the market
4. Innovation speed: Reduces the time needed for simulation, modeling and analysis, leading to faster breakthroughs and shorter development cycles
5. Product upsell: Provides insights to help match products and services with customer behaviors and support targeted marketing
6. Time to market: Streamlines various stages of product development, from concepting and design to testing and production
7. Product development: Facilitates the exploration of new materials, designs and functionalities that can enhance product performance and features

The point at which a quantum advantage intersects with a desired outcome represents a potential use case for quantum computing. You can apply this methodology across numerous industries, ranging from banks and financial institutions to healthcare and retail — and many sectors in between. 

Quantum advantage A scenarios

Quantum computers are significantly more powerful than classical computers, making them ideal for solving complex mathematical operations and interrelated systems where changes in one area can affect multiple other areas.

For example, within financial services, investment firms can use quantum computing to quickly sort through thousands of asset classes with interconnecting dependencies. This application enables portfolio managers to identify the right mix of financial instruments that maximize returns and minimize risks.

Companies in the industrial and manufacturing space can use similar capabilities to debug millions of lines of code, speeding verification and validation during software development.   

Quantum advantage B scenarios

Since quantum technology encompasses many applications of quantum mechanics, including quantum computing, organizations can address networking, software, communications and other IT challenges more effectively than with classical technology. This means that quantum computing capabilities can be particularly effective in meeting increasingly stringent cybersecurity regulations and compliance standards.

For instance, telecommunications companies can use quantum technology to create and distribute random secret keys between network nodes.⁵ Data encrypted with quantum key distribution (QKD) can’t be hacked, strengthening defenses for an industry particularly vulnerable to cyberattacks.

Meanwhile, the banking sector can bolster protection and meet some regulatory requirements by using quantum technology to develop next-generation cryptography and applying quantum machine learning techniques for face recognition and other security measures. The retail industry can also employ quantum technology to improve cybersecurity for e-commerce transactions.

Quantum advantage C scenarios

Conventionally insoluble problems represent the sweet spot for quantum computing, so any application that requires real-time data processing, multidimensional computation or optimization can benefit from the technology.

Scientists can use quantum computers and algorithms to model the atoms and molecules of chemical systems, allowing researchers to better understand and predict their reactions and behavior. This technology will prove especially helpful for drug research and development in the pharmaceutical industry and in formulating chemicals to use in next-generation batteries for electric vehicles. 

Accelerated data analysis also facilitates neural network training and deep learning, enabling AI systems to learn and adapt in real time. These advances will make it easier for banks and insurance companies to detect patterns indicative of fraud and money laundering.⁶

Looking further ahead, quantum-assisted optimization should enable logistics firms to identify the most efficient and cost-effective routes for delivery drivers, and help automotive manufacturers enhance the safety and performance of autonomous vehicles.

Challenges that precede quantum advantages

For all the promise of quantum computing and technology, the innovation may present some obstacles for organizations to navigate. Chief among them is security.

Quantum computers will eventually be able to run algorithms that can easily break modern cybersecurity safeguards, rendering most traditional cryptography protocols and encryption tools obsolete. Companies that don’t have quantum-resilient systems in place by the time quantum computers can crack public key encryption — commonly known as “Q-Day” — will be vulnerable to quantum cyberattacks.⁷ Many governments also worry about the national security implications of quantum computers being used maliciously by rogue nation-states.

The cost of purchasing and operating quantum computers presents another challenge for many organizations. Prices for full-scale quantum machines can run into millions of dollars, and they must be housed in refrigerators cooled to near absolute zero (-273.15 degrees Celsius or -459 degrees Fahrenheit) to function properly.

There are, however, ways to overcome the barriers to entry for quantum computing and technology. Organizations that become quantum safe can help protect their businesses from malicious uses of quantum computing. Meanwhile, as the technology evolves, quantum computing as a service (QCaaS) will become more prevalent, making quantum compute power available for a fraction of the cost of purchasing a machine.⁸

Moving toward the quantum era

It will take time for organizations to determine exactly how the quantum advantage can best benefit their business and develop integration plans with existing IT systems. However, identifying quantum use cases now will allow companies to rapidly adopt the technology when the quantum age arrives in earnest.

Bill Genovese is CIO Advisory-Kyndryl Consult Partner and Global Quantum Services and Consulting Leader. Guy Siviour is a Senior Global Lead on the Quantum Tiger Team.

¹ Quantum’s promise, Global Finance, January 2023
² What is quantum computing?, McKinsey & Company, May 2023
³ JP Morgan is testing quantum deep hedging, Risk.net, April 2023
⁴ Quantum promises a bright future for the pharma industry, Drug Discovery and Development, January 2024
⁵ Moving forward with the security of quantum key distribution, Forbes, May 2023
⁶ Money laundering tackled by quantum computing, IoT World Today, November 2023
⁷ What CISOs need to know to mitigate quantum computing risks, Security, June 2023
⁸ 13 companies offering quantum-as-a-service, IoT World Today, February 2023