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Clifford Chance

Clifford Chance
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Tech Trends 2022 - Quantum Computing

It's Quantum, Baby

Quantum 7 February 2022

As investment in the tech sector booms and potentially transformative technologies build momentum, responsible business and innovation becomes a focus for companies and regulators alike. In a series of five short articles, we look ahead to five key technology trends to watch in 2022. Number Two: Quantum Computing

Quantum leap

Thanks to a global wave of private and public funding, quantum computing has moved from an R&D niche to a computing revolution. With significant advances in hardware, algorithms, fault tolerance and error-correction in the past decade, we are now beginning to see a developing ecosystem and value chain. Using quantum computing to complement and leverage existing technology, such as AI, cloud platforms and classical computing, we could begin to see "quantum advantage" in a range of business use cases and solutions to high-impact problems that are currently intractable. Those monitoring the progress of quantum computing technology are anticipating advances in drug discovery, chemistry and finance.

What's next?

  • Cyber security: Quantum computing has the potential to break much of today's cryptography, which is used for secure communications, financial payments, data protection, identity authentication and cryptocurrencies. While it may be some time before quantum computing has a practical impact on the effectiveness of our current cryptography, information that is encrypted now could be vulnerable in the future. Many organisations will be considering moving now to post-quantum encryption methods and upgrades to IT infrastructure.
  • Regulatory considerations: Given quantum computing's national security implications, the technology is already subject to export restrictions, notification requirements and foreign investment controls in a range of jurisdictions. We can expect further legislation as governments protect their national security interests and pursue policies of 'technological sovereignty' and, in time, requirements around governance, oversight, transparency and equitable access. Controls will be particularly important for decision making that incorporates quantum-facilitated AI, where explainability and liability can become complex.
  • On the board's agenda: Across a range of sectors, many CEOs and CIOs will be allocating resources to start planning for quantum technology. Businesses will begin exploring partnerships with quantum hardware and software developers as well as academic institutions to help anticipate the need for quantum computing talent. The quantum computing sector itself will see increased investment and M&A activity and more SPACs listings as the beginnings of commercial traction are on the horizon for what was once a theoretical technology.

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