Day three of the event really focused on practical use cases and developments. Everything from defense, energy, engineering to FMCG and Finance, practical applications are under development.
Key Take Aways
- Quantum computing can handle much larger matrices, making it ideal for complex financial models that classical computers struggle with.
- Rolls-Royce has developed scalable techniques to reduce the complexity of encoding matrices in quantum algorithms, a potential breakthrough for large-scale financial computations.
- Hybrid computing, combining CPUs and quantum devices, is emerging as a critical approach, allowing firms to benefit from both classical and quantum capabilities.
- Quantum error correction and fault-tolerant algorithms are central to the development of reliable quantum financial applications.
- Collaborative efforts between Rolls-Royce and quantum initiatives like AQCC and NQCC show the value of partnerships in accelerating quantum advancements.
- Investment in quantum software development is key to ensuring future quantum devices can address real-world financial problems.
- The historical slow adoption of GPU computing highlights the need for rapid, targeted investment in quantum software for faster adoption in financial services.
- Practical applications of quantum technologies could be 10-12 years away, with a focus on optimisation, risk management, and secure communications in finance.
- Government agencies in the US, such as AFRL and DHS, are prioritising quantum-safe cryptography, a concern for financial institutions managing sensitive data.
- Quantum-specific solutions, such as state loading techniques, offer unprecedented possibilities in financial data processing that have no classical analog.
- Moody’s has been exploring quantum techniques for portfolio optimisation, with quantum-inspired methods providing comparable results to classical optimisers.
- The growing need for responsible innovation in quantum, with discussions on ethical frameworks, is set to shape how financial institutions deploy these technologies.
Innovation
- Rolls-Royce’s techniques to scale condition numbers in quantum algorithms could significantly simplify large financial models.
- Hybrid computing (quantum and classical) offers innovative approaches to handling complex financial calculations, such as risk modelling and portfolio optimisation.
- Quantum-inspired algorithms, such as those explored by Moody’s, are already providing competitive results without the need for fully operational quantum devices.
- The UK Quantum Responsible Innovation Working Group is pioneering ethical frameworks for quantum technologies, which could impact how financial firms approach quantum data use.
Key Statistics
- Solving a 30 billion equation problem takes 5.5 hours on a 65,000-core classical supercomputer.
- Rolls-Royce has implemented quantum circuits with up to 17,000 phase factors.
- AFRL manages an annual budget of $1.8 billion, leading over 1,200 scientists and engineers.
- The goal is for US government systems to adopt post-quantum cryptography by 2030, with DHS aiming for 2035.
Key Discussion Points
- The ability of quantum computing to address problems involving large datasets that are otherwise unsolvable by classical machines.
- The need for strong international and public-private collaboration to drive quantum technology forward.
- Government agencies’ investment in post-quantum cryptography to safeguard critical financial and governmental data.
- The slow adoption of previous computing technologies, like GPUs, serves as a lesson for developing quantum computing capabilities faster.
- The exploration of quantum-inspired methods, such as simulated annealing, to improve financial optimisation models today.
- Hybrid computing approaches, blending quantum and classical computing, can bridge the gap in financial services during the transition to quantum.
- Quantum computing is expected to accelerate advancements in fields such as portfolio optimisation and risk management, even in its early stages.
- Quantum error correction remains a top priority, as error rates are currently too high for reliable financial use cases.
- Responsible innovation and the development of ethical frameworks are becoming central in quantum computing, mirroring lessons learned from AI regulation.
- Real-world applications for quantum computing in finance may still be 10-12 years away, but early explorations are critical.
- The quantum ecosystem’s growth is driven by collaborative initiatives like AQCC and NQCC, fostering innovation across industries.
- Investment in software development for quantum devices is crucial to unlocking their potential in financial services.
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