EY now has a quantum computer

Big Four Ernst and Young announced that it now has a quantum computer in its Toronto office. 

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A quantum computer is a type of machine that represents and processes information using quantum states exploiting phenomena such as superposition, interference, and entanglement. While most computers today operate on binary bits of 0s and 1s, quantum computers operate on “qubits” that can exist in a linear combination of states known as a quantum superposition with quantum amplitudes determining the probabilities of possible measurement outcomes. Quantum algorithms manipulate these amplitudes through interference and, in many cases, entanglement. When a qubit is measured in the computational basis, the measurement produces either 0 or 1 probabilistically and leaves the qubit in the corresponding state due to wave function collapse.

This allows quantum computers to potentially complete some calculations exponentially faster than even the most powerful classical computers. IBM says quantum computers have the potential to solve certain problems in minutes or hours that would otherwise take conventional machines millennia to complete. At this point, quantum computers are extremely rare – it is estimated there’s only about 100 of them in the world total. 

While the machine is physically located at the Toronto office, the entire EY global network will be benefitting from it. Joe Depa, global chief innovation officer for EY, said they chose Canada because it is recognized as a global leader in quantum computing, which will give them access to talent and strong research relationships plus proximity to clients. Hosting it in Canada also lets EY operate within a framework aligned with Canadian data residency, privacy, security and regulatory considerations. 

Depa declined to say how much the machine cost, but said it is part of the larger $3 billion investment the firm has made in AI and other frontier technologies. While he also declined to share the exact technical specifications, he was able to share that it’s a photonic quantum computer (uses light particles, or photons, as qubits) versus a superconducting (uses macroscopic circuits that work as artificial atoms) or trapped ion (uses individual confined ions as qubits and control them with lasers) system.

While large accounting firms, including EY, have used quantum computing in the past via cloud providers or partnerships, he said they are the first to actually own a physical machine. 

The theoretical applications for quantum computing are vast, ranging from modeling individual particles in high energy physics experiments to running large scale simulations of weather systems to utterly breaking any form of standard encryption. The current use cases, on the other hand, are very narrow such as container terminal optimization, delivery driver coordination, and vehicle production sequencing. But according to Depa this is kind of the point, as EY wants to be well-positioned to take advantage of those big theoretical use cases as soon as they become practical. The purchase was made with more of an eye towards the future then the present. 

“The immediate value isn’t replacing classical computing. Classical systems are still the right tool for the vast majority of what businesses do today. For us, this is about getting ready for what comes next,” he said. 

And so they’re not exactly planning to run tax software or audit platforms on this thing. Right now, he said, they’re really focused on post-quantum cryptography. Quantum computing could theoretically make all conventional encryption obsolete, and so organizations are already planning for a post-quantum future, meaning long-term cryptographic readiness is a genuine business and security priority. He added that EY also sees longer-term potential in optimization, forecasting, risk management, and decision intelligence. Still, he said, the focus right now is on building capability and readiness versus “overhyping quantum advantage.”

For example, three years before making the purchase EY patented “methods and apparatus for time-series forecasting using deep learning models of a deep belief network with quantum computing” which describes a hybrid AI and quantum method that has applications across finance, operations, risk and planning. Depa, when asked about the patent, said it builds on the firm’s broader quantum research and ecosystem partnerships; owning a quantum computer allows them to pursue this method more easily. 

“The quantum computer gives us another platform to research, test and develop as we explore how AI and quantum can work together on tough business problems. It reflects our focus on practical applications, not theory for its own sake,” he said. 

Asked why it was important to actually own a physical machine themselves versus continuing to use public or cloud quantum systems, he pointed to the ability to explore use cases directly, build IP, work through security scenarios, and train their talent on live systems. And so once the technology becomes mainstream, they’ll already be well familiar with how it works at a time when many others will just be starting to learn.

“This investment is less about where quantum computing is today and more about making sure EY has the talent, skills and security capabilities to be ready for where the technology may be tomorrow. The most immediate focus is helping our people and our clients build quantum readiness, particularly around post-quantum cryptography and protecting data for the long term,” he said.