AI has greatly shaped how businesses – and our daily lives – operate. From powering decisions to streamlining operations, leveraging it effectively has become a game-changing competitive advantage.
But just as we’re settling into the AI era, an even bigger shift is on the horizon.
This next leap isn’t another algorithm or a larger model. It’s the convergence of AI’s superior intelligence with quantum computing’s exponential power. Think of AI as the strategic brain and quantum as the muscle power. Each is impressive on its own, but together they have the potential to redefine entire industries.
And here’s the strategic insight: Very few places in the world have the dual advantage of AI expertise and quantum depth. Waterloo, Canada is one of them.
Let’s dig into what this convergence, commonly known as Quantum AI, means for businesses and why business leaders should pay attention to it.
Why Quantum AI is the next competitive edge
AI is already transforming how businesses automate operations, make faster decisions and generate intelligence. Today’s advanced AI models require massive computational power and enormous amounts of energy. The International Energy Agency (IEA) estimates that data centres consumed 1.4 – 1.7% of global energy in 2022, a number that will only keep climbing as AI adoption accelerates.
Quantum computers are not just faster, but they process information in entirely new ways. They can understand highly complex systems, evaluate countless possibilities simultaneously and uncover opportunities that today’s classical computers can’t. This ability to handle complexities more efficiently positions quantum to dramatically reduce AI’s energy demands.
AI, in turn, helps make quantum practical. It can calibrate hardware, reduce noise, guide error correction and improve algorithm performance – making quantum systems more stable, reliable and commercially usable.
Together they act as a powerful duo for business innovation and improvement.
What does Quantum AI look like in the real-world
Big tech companies like Google, Microsoft and IBM are actively building the infrastructure needed for Quantum AI to solve real-world challenges across industries. These strategic initiatives signal that Quantum AI isn’t a far-off concept, but a reality taking shape faster than expected.
In finance, for example, Quantum AI has the potential to enhance risk forecasting, generate insights at extraordinary speed and give investors a clear edge. In manufacturing and supply chains, it can combine the optimization capabilities of quantum with analytical prowess of AI to overcome challenges like real-time scheduling, predictive maintenance and simulation. In healthcare and drug discovery, quantum AI can shorten R&D cycles, simulate chemical reactions and analyze vast genetic data to design more precise treatments.
And these are just a few examples. Quantum AI has the potential to transform every industry from energy to communications, security and more – wherever massive data and complex systems interact.
Why Waterloo sits at the epicentre of Quantum AI
Not many regions in the world can claim deep strength in quantum and excellence in AI, but Waterloo can.
With a world-leading quantum cluster built on institutions like the Institute for Quantum Computing and Perimeter Institute, and a fast-growing community of quantum startups, our community is already translating quantum science into commercially viable technologies.
But that’s only half the story.
This region is also a powerhouse in AI and advanced computing. Home to more than 135 AI and applied AI companies, anchored by University of Waterloo (one of Canada’s top ranked universities for AI) and a network of related research institutions – the Waterloo community is an AI heavyweight by every measure. It’s exactly why Google, Apple, EPAM Systems and SAP chose to build and grow in this community.
And Waterloo isn’t just strong in Quantum and AI separately. We have PIQuIL – Perimeter Institute Quantum Intelligence Lab – a one-of-a-kind lab showing what’s possible when these two powerful technologies come together. It was one of the first to bring industry and researchers together to use AI for advancing quantum research. We’re already seeing new companies like Open Quantum Design (OQD), a spinout from PIQuIL and the University of Waterloo Science faculty, forging new frontiers at the intersection of quantum and AI.
Not only this, but companies like Apple, IBM, AWS, Xanadu, IonQ and QuEra have partnered with the lab to explore the fusion of Quantum and AI for real world applications.
Yet another example is the launch of Dieter Schwarz Chair in Physics of Information and AI at the University of Waterloo – a role dedicated to advancing the intersection of quantum theory, machine learning and algorithm design. It’s another feather in our ecosystem cap, signaling to businesses that Waterloo is where the next wave of Quantum AI breakthroughs will happen.
" Real breakthroughs happen when deep scientific insight meets commercial imagination. Nowhere is this more powerful than in Waterloo region, where world-class talent in both quantum and AI already resides. This convergence is happening here because our community has the expertise, experience and collaborative culture to translate frontier science into real-world impact. "
Greg Dick
CEO, Open Quantum Design
What should smart business leaders do now?
Short answer: Plant yourself in a hub where the future is being built today.
If you’re a business leader, the smartest move right now is to be part of an ecosystem where Quantum and AI are advancing side by side. With its deep research foundation, abundant talent and collaborative culture, Waterloo’s ecosystem gives you all the right tools to lead the Quantum AI revolution.
Key Takeaways
- Combining AI and quantum computing can transform industries, from finance to healthcare to bring the next competitive advantage
- Big tech companies are already investing in research and infrastructure to be at the leading edge of Quantum AI era
- Embedding your business in an ecosystem, like Waterloo, gives you access to the research, talent, community and infrastructure needed to be ready for the next wave of innovation
Our team at WaterlooEDC can answer your questions.