Just when you thought you understood artificial intelligence (AI), the technology received a twist. That’s because AI is being merged with quantum computing faster than expected. This outcome could have significant implications for financial services as well as other industries.
“The physical world is defined by quantum mechanics,” Chris Hume, senior director of business operations at SandboxAQ, told PYMNTS. “The more effectively we can understand these interactions and model those interactions, the more efficiently and effectively we can build predictive models. “By combining the classical computer hardware that is available today, we can build better predictive models. That’s the interesting part. And that’s the opportunity we have in front of us.”
SandboxAQ is named AI and Quantum Computing Hybrid AQ. Quantum computing as a holistic approach to data is many years away, and as Hume said, even scientists working on quantum computing models have not yet fully grasped the concept. may not understand. However, you don’t need a physics degree to understand the basics of how quantum principles are deployed before the technology is fully developed. There are many definitions, but perhaps the most useful examples are those related to financial services.
Suppose an investment banker is working on developing a strategy for a wealthy client. Bankers have an infinite number of choices, each with specific potential outcomes. Traditional investment analysis examines this situation step by step, evaluating each investment strategy to determine the best outcome. It’s a reliable method. However, in today’s volatile and fast-paced markets, there are potential flaws, especially now that AI has revolutionized predictive investment analysis in a short period of time. In quantum computing, instead of evaluating investment strategies individually, they were evaluated simultaneously using his two principles that are central to quantum mechanics: superposition and entanglement.
quantum principle
Let’s unpack these two concepts. Superposition allows a quantum bit (qubit) to exist in multiple states at the same time. This means that quantum computers (or quantum computing capabilities) can process complex and overlapping scenarios simultaneously rather than sequentially. Investment bankers will therefore be able to evaluate the results of diversifying their clients’ portfolios across products such as stocks, bonds, commodities and real estate all at once rather than one by one.
Entanglement allows qubits to be interconnected, allowing you to assess whether the value of your investment increases or decreases over time. This reflects the interconnectedness of global financial markets, where changes in one market segment or geopolitical events can impact asset values and, therefore, investment strategies.
Next, add the AI. SandboxAQ uses quantum sensing Leverage advanced AI to unlock insights in areas such as financial services, navigation, medical devices, imaging, and more. Quantum sensing detects minute changes in the physical world at the atomic level, such as motion, electric fields, and magnetic fields that cannot be detected by other methods.
For example, quantum sensor technology is being used in the medical industry to create more detailed MRIs than currently used. Using these sensors generates more data. AI is needed to interpret that new data set and make it available to clinicians and patients. Early applications are also being shown in the navigation and transportation industries.For example, Airbus’ navigation technology division Cubed uses AQ and quantum sensing to accurately read flight paths and develop autonomous airplanes.
“AQ is not just the technology of today, but of the future,” Hume said. “Even if quantum computers become fault-tolerant, error-corrected, and able to reliably deliver results, it will still be important. But now AQ is a bridge to that future.
“The way we bring it to life is through simulation, and AI simulation is probably the most prominent part. So we’re using the latest generation of hardware to create expressions of these quantum principles.”
Quantum AI use cases
Hume’s company has some important qualifications and proof points for bringing these concepts home. After spinning off from Alphabet in March 2022, a series of high-profile moves, including a $500 million funding round in February 2023, catapulted the company to the forefront of the AI space.
The company acquired Cryptosense in September 2022 as a way to accelerate the delivery of security solutions to global organizations. The second The company acquired Good Chemistry, an AI accelerator and simulator for drug discovery and design.We have also entered into a partnership with Accenture In mid-January, we explored quantum solutions to security problems ranging from ransomware to social engineering scams. I also published a paper on it. World Economic Forum in Januarydetails some of the changes that AQ could bring to the financial services industry.
the paper was placed Three potential areas AQ disrupts risk mitigation, fraud detection, and portfolio optimization. The company believes its quantum machine learning models can more accurately catch crimes and fraudulent transactions than current alert-based systems.
These same quantum-inspired algorithms can help optimize diversification and asset allocation, improving portfolio performance and stability. The company says this will improve revenue and risk management for its customers. HSBC has already said it is using AQ to modernize its cryptographic controls to protect its infrastructure, financial assets, intellectual property and customer information.
“The World Economic Forum was a very impactful time for us because we had the opportunity to educate a lot of people in a short period of time about the applications we were bringing to market,” Hume said.
“We’re seeing a lot of concepts and ideas getting a lot of attention. Five years ago at Davos, natural language processing and LLM were the talk of the town. Now we’re beyond that. We want to continue to educate the general public, as well as businesses and government agencies, about some of the values, benefits, and risks of all these new technologies.”