October 2, 2024
Scott Buchholz Forbes Councils Member
COUNCIL POST| Membership (fee-based)
Quantum computing technology is rapidly advancing—and will likely enter the enterprise world sooner than many executives think.
Although the sources of funding for quantum computing have changed, enthusiasm in the industry remains strong. According to a 2024 report produced by IQM Quantum Computers, OpenOcean and Lakestar (in partnership with The Quantum Insider), while by 2023, venture capital investment in quantum computing “decreased by approximately 50%,” the “downturn in private investments has started to be increasingly picked up by government backed funding commitments and contracts.” The report noted that there’s been an increase in interest in quantum technology from governments around the world—specifically, “more than 30 active governments have announced investment commitments more than $40 billion over a period of 10 years, dwarfing private funding by conservative estimates.”
In spite of the fact that many of the quantum computers that exist today are in research labs rather than data centers, given the pace of investment and commercialization, executives should start preparing now for the era of quantum computing.
How Quantum Computing Can Be Applied In Enterprises
Quantum mechanics, the science that underlies quantum computers, is both complex and fascinating. However, leaders don’t need advanced degrees to understand two key points. First, because quantum computers work on completely different principles than today’s math-based computers, they can tackle problems that today’s computers either struggle with or are unable to solve. Second, quantum computers will likely make the biggest impact in the areas of optimization, machine learning and simulation-based solutions. Understanding how to look for applicable use cases is more important for executives than understanding how the technology works under the hood.
Optimization is the process of making the best possible decision to achieve a specific goal within given constraints, often a resource-intensive effort. It can involve everything from finding the most efficient and effective way to allocate resources, maximize profits, minimize costs, improve overall performance and more. For the most complex optimization problems, classical computers can take hours or days to find good solutions. By contrast, quantum computers find very good solutions within minutes for optimization problems, saving time and lowering the chances of making suboptimal decisions.
Then there’s machine learning and AI. Quantum machine learning has the power to yield models that are more accurate than their classic counterparts while requiring fewer data inputs. As noted in a 2024 research article published in Nature Communications, “Quantum machine learning models have shown successful generalization performance even when trained with few data.” Quantum computing is also “expected to give rise to a new family of algorithms in quantum-enhanced machine learning” as explained in a 2020 research article published in IEEE Access. The possibilities that quantum machine learning can unlock have many use cases, including fraud detection, medical imaging diagnostics and synthetic data generation.
As for simulation, quantum computing can help us better understand the properties and materials of the physical world and innovate more safely and quickly. For instance, quantum computing will be able to simulate molecular interactions in pharmaceuticals and the resulting biochemical reactions in the human body, speeding up drug development, which will enable us to put life-saving medicine on the market faster. Another area this technology also stands to positively impact is sustainability—for example, by simulating molecular interactions, scientists can develop the next wave of plastic alternatives.
The Downsides Of Quantum Computing
While quantum computing will bring many advantages, it brings downsides as well.
Key among the downsides is the ability of a future quantum computer to be able to rapidly decrypt encrypted information, which has serious cybersecurity ramifications for the enterprise world. Sensitive information about business contracts, financial data and employee records, to name a few, could be at risk of exposure. Action is being taken to address this concern. In 2022, the National Institute of Standards and Technology (NIST) homed in on “four algorithms designed to withstand attack by quantum computers.” From there, the agency worked on “standardizing these algorithms.” The standards were released in August 2024. Organizations should consider beginning to plan their transition to these new standards now.
The power of quantum computers may also have second-order effects, such as leading organizations to harvest more personal information in an effort to better predict user behavior and influence customer decisions.
How Business Leaders Can Prepare For The Era Of Quantum Computing
Some organizations are already leveraging quantum computing. A 2022 report by Hyperion Research sponsored by D-Wave, for instance, found that some organizations are “engaged in a range of QC-related development activities.” The top activities “include exploring options and monitoring technology developments followed by performing quantum use case analysis and prioritization.” Business leaders should start taking steps now to prepare for the era of quantum computing.
To prepare, the first step business leaders should take is to educate themselves on the nature of the technology. They don’t have to become quantum computing experts, but they should cultivate a foundational understanding of the nature of the technology and its capabilities. In turn, that understanding will help them pinpoint applicable quantum computing use cases for their organizations. For instance, a pharmaceutical company will have a very different use case for quantum computing than a big-box retailer. By getting a sense of the applicable use cases, leaders can start to determine how quantum computing might affect their organizations and what they’ll need to prioritize moving forward. Navigating workforce challenges in the era of quantum computing stands to be one of the most pressing issues for companies. It takes years to train quantum information scientists. When quantum computing starts becoming more widespread at the enterprise level, the leaders may find themselves looking for talent that may not exist at the scale that’s needed. By thinking ahead, leaders can get a headstart on talent acquisition and hiring initiatives to prepare for the future.
Quantum computing might feel distant and far off, but it’s advancing at a rate that will likely bring it to the corporate world sooner than most executives anticipate—and it will have a greater impact than many currently imagine. The longer leaders delay preparing for quantum computing, the further behind they risk falling, especially in light of having to juggle other emerging technologies. Taking deliberate action now will help business leaders strategically leverage quantum computing to their benefit in the near future.
Scott Buchholz is the CTO of Deloitte Consulting LLP’s Government and Public Services practice. Read Scott Buchholz's full executive profile here.