A recent survey by Accenture Research reveals that the adoption of quantum computing by local companies could increase New York’s GDP by $113 billion and add 57,000 jobs over the next five years. In 10 years, GDP could increase by $332 billion with 95,000 jobs added.
250 business leaders in the New York Metro areas from companies with at least $500 million or more in annual revenue participated in the survey that was conducted in May and June. According to respondents, potential drivers of economic growth from quantum computing include attracting new talent from other states, increasing state revenue, attracting new businesses and creating new jobs.
Companies are already investing in Quantum Computing and spending is substantial. Beyond aspirations to be a pioneer in quantum development, companies have taken real action and are already investing. These actions are rooted in the companies’ confidence that quantum technology will enable their company to resolve organizational problems better, faster, and/or cheaper than with classical computers. 97% agree that quantum computing will provide enormous growth for their companies comparable to the growth they’ve experienced from artificial intelligence.
Companies anticipate that the technology will have the greatest impact internally for efficiencies or effectiveness, but they also foresee external benefits including offering new products or services, being part of a new ecosystem or user experience, and enhancing existing products or services.
Robust investment in Quantum Computing set to rise further as COVID-19 clouds outlook. The majority of leaders think that quantum computing will increase their enterprise’s level of security risk, but less than half are assessing this risk as they prepare for adoption. As companies pilot quantum-related efforts they will gain a better understanding of emerging cyber risks to their organization, but also the opportunities to use quantum to develop more robust security protocols. This awareness may further accelerate quantum computing efforts, especially among companies in early stages of adoption.
Respondents cited the impact of COVID-19 as one factor that could affect quantum computing initiatives. One in four said COVID-19 will accelerate their need for adoption, but nearly half said it will delay adoption and 36% are reevaluating investment and funding. Forty six percent said that the pandemic will negatively affect their ability to secure the talent they need for quantum computing.
As companies ramp up hiring to support Quantum initiatives, developers and data scientists are in highest demand. Though 95% of companies have a team or single individual dedicated to quantum or emerging technology initiatives, respondents plan to increase hiring and reskill their workforces. Seventy-two percent plan to hire new talent with skills in quantum computing, while 77% agree that they’ll need to dramatically reskill their workforce. The top three areas of expertise needed include developers, data scientists and system integrators.
Additionally, only 34% of companies have the needed skills to secure the adoption of quantum computing. As adoption increases and companies gain a better understanding of the impact of quantum on cybersecurity, reskilling and hiring efforts to gain cyber expertise may increase.
New York offers a wealth of talent and opportunities for collaboration within technology ecosystem. Already, more than half of quantum-related jobs at the respondents’ companies are based in New York. To support future initiatives, 81% are confident that they can find the skills they need in the state and its metro areas.
Access to technology talent and skills was cited by 64% of companies as the top reason why being in New York helps their organization stay at the forefront of advanced technologies such as quantum. Other benefits include access to the most advanced innovation in new technologies, access to leading thinkers in advanced technologies, availability of venture capital investment and access to leading academic institutions.
Companies are taking advantage of this access through collaborations and partnerships. Eighty-four percent of respondents said their organization is supporting or participating in the quantum ecosystem to help accelerate the potential broader opportunities which it could help unleash. Common areas of collaboration are taking place with technology companies, quantum start-ups and professional services companies.
Despite opportunities for collaboration, finding the right partners was cited as the top challenge companies face in planning for quantum computing. The inability to set up an organizational structure that supports continuous innovation was the second biggest hurdle.
Four ways that local government and organizations can seize economic opportunities from Quantum Computing. To help companies address these challenges and seize the opportunities from quantum computing, there are ways that the state and businesses can help. These include: specialized training and tools for developers and data scientists; incentives (e.g., tax, subsidies) for companies building a quantum lab and/or increasing their R&D investments, convening an expanded New York state quantum ecosystem; and specialized college and university curriculums to train future workforce.
The challenges facing quantum
Top three challenges organizations face in planning for Quantum, as indicated by survey respondents.
Webinar: Quantum Computing in New York
Quantum Computing will bring tremendous growth in the next 10 years.
Watch a terrific conversation on the growth of quantum computing in the New York market hosted by Maria Gotsch, Pres and CEO of the Partnership Fund for New York City and Accenture’s Marc Carrel-Billiard, Global Lead of Accenture Technology Innovation and Accenture Labs.