At a glance
By Gary Anders
It is the quantum technology leap that scientists have waited decades to take.
It is also a gap that is rapidly closing, as a growing number of technology companies join the race to develop the world’s first quantum computer.
Among those companies are IT giants Google, Microsoft, IBM, NVIDIA and the relatively small Silicon Valley-based technology firm PsiQuantum.
In an industrial precinct adjacent to Brisbane Airport in Queensland, Australia, PsiQuantum and its partner, Germany’s Linde Engineering, are building a cryogenically cooled plant that they say will house the first utility-scale, fault-tolerant quantum computer.
This ambitious project is backed by A$940 million in funding from the Australian and Queensland governments.
What is quantum computing?
Unlike traditional computers, which process millions of bits of data separately, quantum computers aim to harness advancements in physics and chemistry to process much larger amounts of information simultaneously and at significantly higher speeds. The units of information that enable this processing leap are known as quantum bits (qubits).
Quantum computing has the potential to bring about groundbreaking advancements across fields such as medical research and artificial intelligence (AI). It could also optimise many complex, time-sensitive processes undertaken across the global financial sector.
For accountants, quantum computing could lead to game-changing enhancements, such as the ability to conduct complex internal audits and complete granular tax modelling in milliseconds. Another advancement could be the ability for organisations to leverage quantum systems to instantly detect accounting anomalies and potential fraud.
"The moment for most financial services organisations to begin addressing their vulnerabilities to quantum threats is now, before large-scale quantum machines arrive."
Once access to such technology becomes commercially available and affordable, regulators may also utilise quantum computing technologies to assist with compliance activities and better inform policy development.
Management consulting firm McKinsey & Company says financial services companies that are able to leverage quantum computing are likely to achieve significant productivity gains by being able to analyse large or unstructured datasets more effectively.
“Sharper insights into these domains could help banks make better decisions and improve customer service, for example, through timelier or more relevant offers,” notes McKinsey.
“There are equally powerful use cases in capital markets, corporate finance, portfolio management and encryption-related activities.”
When will the first quantum computer be a reality?
In December 2024, Google announced the development of Willow, a quantum chip that could perform a complex computation in less than five minutes, which Google said would have taken one of today’s fastest supercomputers billions of years.
“The next challenge for the field is to demonstrate a first ‘useful, beyond-classical’ computation on today’s quantum chips that is relevant to a real-world application,” said Hartmut Neven, founder and manager of Google Quantum AI.
Earlier this year, Microsoft published a report to illustrate its progress in investigating the possibility of creating qubits using superconductors. It is still a work in progress. Microsoft has been conducting its research for over a decade and is yet to prove its technology will work in a quantum computer.
Meanwhile, PsiQuantum is pressing ahead with its Brisbane plant with the aim of achieving an operational launch by late 2027.
The PsiQuantum team at the Brisbane Airport site will include cryogenic, mechanical and electrical engineers, as well as physicists, technicians and a range of tech professionals.
Quantum computing risks
While quantum computing holds immense promise, it also presents significant cybersecurity risks.
Shor’s algorithm, a quantum algorithm developed by theoretical computer scientist Peter Shor in 1995, has the potential to crack the most advanced encryption codes used today.
Therefore, quantum computing could result in the exposure of personally identifiable information and web-based communications, potentially leading to legal liability and regulatory risk.
A powerful quantum computer could be misused to exploit sensitive data and compromise security measures, impacting global privacy and security.
Quantum readiness: The time to prepare is now
Dr David Guarrera, EY Americas Generative AI leader, says it is imperative that organisations take steps to increase their data security processes and safeguard their confidential information.
“This critical need for safeguards is particularly true for financial services organisations, which handle vast amounts of high-value customer data and intellectual property — a breach of which could result in significant financial loss, reputational damage and legal liability.
“Waiting until the threat becomes imminent could result in severe repercussions, including the potential loss of valuable information and financial assets, as well as reputational damage.”
Professor Peter Turner, CEO of the Sydney Quantum Academy — a partnership between Macquarie University, UNSW Sydney, the University of Sydney and University of Technology Sydney supported by the New South Wales government — says quantum communications is a key area of focus.
“Shor’s algorithm is a big threat to the classical cryptography that’s being used across organisations. It will affect everyone,” Turner says.
“There are what they call post-quantum cryptosystems, which are just updated classical cryptosystems that we believe, to the best of our knowledge, will be resistant to quantum computers in the future.”
Turner says it is probable that criminals could already be collecting data in an encrypted form and “just waiting until they have a quantum computer to decode it”.
“If that information is still sensitive in five, 10, 15 or 20 years, then companies are already thinking about this issue. Certainly, governments are. It’s still unclear how much impact quantum computing is going to have.”
To mitigate risks, organisations should be thinking about securing their existing systems before quantum computers become a commercial reality, such as taking action in areas including web browsing, remote access, software, digital signatures and communication, as well as educating employees and stakeholders about potential risks.
Guarrera says some financial services organisations have already begun taking steps such as hiring experts and investing in quantum-resistant technologies and intellectual property. Others are “still on the sidelines, not wanting to be the first to act, but running the risk of falling behind in a rapidly evolving technological landscape,” he says.
“Most experts estimate it will take another five to 10 years before quantum computers can break RSA [Rivest Shamir Adleman cryptosystem], which is the world’s most widely used encryption system.
“Despite this timeline, the moment for most financial services organisations to begin addressing their vulnerabilities to quantum threats is now, before large-scale quantum machines arrive.”
