How quantum computing will reshape Australia’s economy

 

Rita Gatt, National Lead Partner – Regulation, Security and Risk at Deloitte, discusses the revolutionary potential of quantum computing.

Stef Winwood: Hi. My name is Stef Winwood from BluGlass (ASX:BLG), on behalf of Finance News Network today, and joining me today is Rita Gatt, who is a Partner at Deloitte serving as the National Lead for Quantum Security and Readiness, as well as for Regulation, Security and Risk. Thank you so much for joining us today, Rita.

Rita Gatt: Thanks for having me.

Stef Winwood: So, Rita, your expertise lies in quantum computing and cybersecurity, of which quantum will have an enormous impact. Could you share how you see quantum computing as anticipated to revolutionise not just computing, but industries?

Rita Gatt: The main thing when I think about quantum in the future is that every industry will likely be disrupted. So, I can't think of a problem that a quantum computer potentially couldn't have some type of implication for. For those who don't know much about quantum computing, although I assume the audience knows a little bit about it, a quantum computer has this ability potentially to solve problems that previously may have taken us thousands of years and could potentially solve them in seconds. So, when I think about industries such as agriculture, those related to things that may impact climate, when I think about big-world problems like food scarcity, or when I think about solving problems related to medical research, quantum computers are going to disrupt all of those industries and really have a positive impact in our ability to actually solve problems a lot quicker and really provide outcomes that we couldn't imagine many years ago.

Stef Winwood: For a long time, the quantum revolution has been viewed as a far off future. However, quantum computing is here now and its mainstream commercial application is now years, not decades away. Where do you see its greatest potential and how should Australian investors be thinking about the sector?

Rita Gatt: I think that I see its greatest potential, in particular for Australia, in taking us from being known as innovators to then scaling that to something more sustainable. We have such a fantastic culture and background in terms of our ability to have ideas and innovation concepts and to see them through to a certain extent, but I'm really excited for us to really invest in quantum computing to take that to the next level and to see us have that really sustained approach to innovation and what we can come up with.

From an investment perspective, I look at it from a few different lenses. So, there's the really obvious ones around investments into the actual quantum computers themselves, the technologies associated, some of the components, such as semiconductors, that make up a quantum computer. But I also look at investment from actually having a lens when you're looking to invest about whether organisations are taking quantum seriously. Are they looking at quantum from an innovation perspective? Are they looking at how it will disrupt their industry and how can they actually then think about how they might use that as a game changer? But, also, are they looking at quantum from a security perspective and are they adequately preparing?

We know that there are some significant risks ahead when it comes to quantum security and the impact it will have on cryptography, and I've seen such a variety in all my conversations across large organisations around Australia from not really looking at anything to do with it right through to they're really on top of it. The implications of not doing anything could be pretty catastrophic for some organisations. And so, as an investor, I'd be looking at how well our organisations are actually looking at both of those aspects.

Stef Winwood: Do you see the quantum sector in Australia as an economic engine for the nation?

Rita Gatt: I see it as a huge economic engine. I read a report recently that predicted that, by 2035, the quantum technology industry would be about $1 trillion globally, and then in Australia by 2045, that we'd be looking at around $6.1 billion in terms of its contribution to our economy. I actually think those numbers are understated. And a couple of reasons why I think they're understated, number one, when I look at the technologies in terms of quantum, I think that we look at those numbers that I just mentioned in terms of how it'll contribute to the economy just based on that technology, but are we also looking at the significant growth that it potentially could contribute to in terms of some of the industries in Australia? So, some of the breakthroughs that could really game-change the Australian economy in terms of what we might contribute to, whether it be things to do with mining, agriculture, medical research, etc. So, I think that number is really under-baked for us.

Secondly, the World Economic Forum produced this unbelievable document, and it had a map in it of the world and showed all of the investments — it was at the start of last year, so beginning of 2023 — showing which countries we're investing how much money in terms of quantum technology. I wanted to use that beautiful picture for a presentation recently, but it was out of date, and I think it was about a year after it actually had been produced, and Australia, in particular, I think it had estimated a quarter of what we're actually investing in terms of its prediction in terms of quantum technology. India was well under-baked and I believe that some of the European countries as well were, and that's just in one year, that change in terms of the amount of investment. So, I'd love to see in a year what those numbers that I just mentioned at the start in terms of a trillion and $6.1 billion look like, because I suspect they're going to change pretty rapidly.

Stef Winwood: So, just to clarify, you're saying that we invested 25 per cent more in quantum than what was anticipated or we invested 25 per cent less?

Rita Gatt: Four times as much as what the document actually showed.

Stef Winwood: Four times as much? Okay. Okay, this is good. So, in terms of ranking, do you know where we sat?

Rita Gatt: Still, from what I was looking at this morning, we're not in the top five in terms of dollar value. I guess we're punching probably above our weight in terms of if you look at population versus the amount. China are making some significant investments in quantum. I believe it's greater than $15 billion, for example. The US, no doubt, are not at that level, but still investing quite a fair bit. We've got a way to go, but some of the things that we have invested in more recently, obviously the big announcement in terms of what we're investing up in Brisbane, make up a big part of that quadrupling of our number, but we're getting up there. We've got some room to move, but I'd say we're probably punching above weight in terms of our size versus investment.

Stef Winwood: Australia has for several decades held a leadership position in quantum research and development, however investment in the sector has exploded worldwide and we are in the midst of a global race for what will be game-changing strategic capability. How can Australia ensure that it keeps our leadership position in this space onshore?

Rita Gatt: Yeah, this is something that concerns me. I guess it's not just quantum computing, actually, it's in general science and technology in Australia. You could be answering the question for that.

I think that there's a few different ways. So number one, the investment, whether it be public or private investment. How do we continue to invest in that type of technology and be committed to it over a longer period of time? Because there'll be some hurdles, I think, and so we've got to stay the course.

I think, secondly, it's really important for industries in Australia to actually make their own investments. And it's not just the financial investments, but it's the investment in their research and time and understanding, what I'd mentioned a little earlier, which is how do they understand how their industry will be disrupted and how will that benefit them? How can they look at these technologies as something that will be a game changer for them and talk about that and promote it?

And then that leads me to the third point, which is promotion is key. I don't know if this is the right word to use, I really would love for quantum computing to be a little bit more "glorified". I think back to university days, and I remember reading this article, and it was from at the time a leading scientist in Australia who talked about that week a couple of medical researchers in Australia had won a Nobel Prize for some unbelievable things that they'd done. There was more media attention in a particular football game that week times twenty than there was on that unbelievable win by the researchers. And I love sport, and it's a big part of our culture, and that's fascinating, and I'm all for it, but I remember feeling really sad and thinking, "Geez, imagine if we had scientists who are doing these amazing things actually getting in the time and attention that they deserve for what they're actually doing."

So, I'd love us to promote those type of things more and really get a lot more media attention around such exciting things that we're doing in that field, and I think that that will naturally lead to something really important, which is inspiring people to study in an area which we're going to be completely under-prepared for in terms of talent for that type of workforce in the future.

Stef Winwood: Inspiring the right skills and the future workforce development is going to be really pivotal to us maintaining or even increasing our leadership in the space. So, I think that was a great point. Thanks, Rita.

Both advanced computing and quantum computing rely heavily on semiconductors. Why are semiconductors so important, especially in the context of quantum computing, and how do you see Australia playing a role in this industry?

Rita Gatt: So, absolutely essential in terms of semiconductors and quantum going hand in hand, and it's not just for the actual processing components, but it's actually in terms of the use of semiconductors for qubits as well. It's also really important to quantum key distribution, so that's a really important relationship even now that's being researched by organisations locally and globally for quantum communication.

I guess I also think about the fact that it's really important, as well, when we focus on not just semiconductors and their importance to quantum computing, but the importance of our supply chain and actually semiconductors and the manufacturing of them in Australia. Quantum computers will be an important part of economies in the future, and if we can't have security around the essential components for them, that could be really disruptive for us. So, I think that that's something, in terms of the relationship between semiconductors and quantum for Australia, it's really important that we have some security around that supply chain.

Stef Winwood: So you've touched on Australia's nascent strengths in this space, but also our supply chain vulnerabilities as well. Now, Deloitte is hosting the inaugural Semiconductor Australia Conference in your stunning venue this October. Can you tell us why you are supporting this important event and what you hope attendees will gain?

Rita Gatt: So, I guess, first why Deloitte's sponsoring and supporting the event, we absolutely love technology at Deloitte and we really are obsessive about the future of technology, and so it makes sense for us to be part of something and support something that's so important, but we also are really invested in the economy of Australia and really understanding where we're going in the future of it, and the things that will actually drive our economy. Deloitte Access Economics does a lot of research in this space as well. And, for us, we know that this is going to be a really core component of our future and of our economy, and so it, again, makes sense for us to support something so important.

Personally, I just love science and technology, but I'm very passionate about what we just talked about before, which is the talent pipeline. I think I worked out before I have a child who is eight and another that's five, and a one-year-old. All of them will be about entering the workforce around the stage where quantum could become, for example, a much more prominent area of the technology industry. And I hope that all of them have studied the things that make them not just able to work in that field, but really passionate about it. But it starts at that age. And you see it, I guess, at an early stage in terms of interest in science, etc. It's really important to actually have the interest building from such an early age. And, coming back to the event, anything that can actually promote and make interesting some of the fascinating things that we're doing in science and technology, I'm all for it.

Stef Winwood: Rita, it has been such a fabulous discussion. Thank you so much for joining us today.

Rita Gatt: No worries. Thanks.

Ends

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