Quantum Computing for Board Directors: Navigating the Future of Innovation

Expert panelists Pete Shadbolt, Patrick Huston, and Aaron C. Kemp along with moderator Laurie Yoler explored how quantum Computing could revolutionize industries, examining key risks, competitive opportunities, and long-term potential for organizations.

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Key Takeaways

Definition: Quantum computing is a type of computing that uses quantum bits (qubits), which can exist in multiple states at the same time (superposition). Additionally, when qubits are entangled, they are linked in such a way that the state of one can instantly affect the other, no matter the distance between them. This allows quantum computers to process information much faster than classical computers in certain tasks.

Potential Uses: Quantum computing promises to revolutionize sectors like pharmaceuticals (e.g., modeling protein behavior), energy, automotive, and semiconductor industries. It could significantly enhance problem-solving capabilities, such as faster drug discovery, climate change solutions, and portfolio optimization in financial services.

The Risks: Quantum technology poses significant security risks, particularly in cryptography. It could break current encryption methods, endangering sensitive information, financial transactions, and national security. The government and defense sectors are particularly concerned about its potential for codebreaking and espionage.

The Opportunities: Directors should add quantum to their next board meeting agenda and focus on the real-life applications of quantum computing, such as its potential to solve problems that traditional computing cannot, and how it could create competitive advantages for their companies.

Long-Term Strategy: Directors must think 5-10 years ahead and discuss with their C-suite how to integrate quantum computing into long-term strategic decision-making. While some companies may want to jump on quantum, others may decide not to put quantum in their long-term strategy, but the discussion should be had.

Post-Quantum Cryptography: Directors should begin planning for the shift to post-quantum cryptography to protect their data. The transition will take approximately 3-5 years and requires a comprehensive migration strategy to safeguard critical information from quantum attacks. The necessary resources required to do this needs to be considered well in advance.

Talent and Resources: As the quantum industry faces a talent shortage, boards must prioritize how to attract skilled professionals and invest in the necessary infrastructure to support quantum initiatives at their organization.

Stay Informed: Boards should follow developments in quantum computing through reputable sources like NIST's updates on post-quantum encryption standards, Google’s advancements in quantum processing, and other industry research. Reading papers and attending webinars can help deepen their understanding. There are new learnings every day, so it's important to keep up with what's going on, including globally.

Questions to Ask in Your Next Board Meeting:

• What is our company’s long-term strategy for leveraging quantum computing, and which specific business areas will benefit from it?
• What is our plan for transitioning to post-quantum cryptography, and how are we preparing to secure our data against quantum threats?
• How can we incorporate quantum computing into our innovation strategy while mitigating its risks, especially regarding data privacy and security?
• How are we addressing the quantum talent shortage and ensuring that we have the necessary resources to execute our quantum strategy effectively?
• What strategic problems could quantum computing solve for us that traditional computing cannot, and how can we stay ahead of the competition in adopting this technology?
• Given the geopolitical importance of quantum computing, especially concerning national security, how are we aligning with government standards and international developments in this field?

A huge thank you to our partner KPMG for generously hosting this event.