Citi's Tahmid Quddus Islam is joined by Michael Brett, Principal Specialist to discuss Quantum Computing in the High Performance Computing group at Amazon Web Services. They discuss: What role is the cloud expected to play in the adoption of quantum computing? What is AWS’s quantum computing strategy? What are the main use cases you’re seeing your platform used for? Who is using your services?

Citi's Tahmid Quddus Islam is joined by Michael Brett, Principal Specialist to discuss Quantum Computing in the High Performance Computing group at Amazon Web Services.
They discuss:
<ul type="disc">
<li>What role is the cloud expected to play in the adoption of quantum computing?</li>
<li>What is AWS&rsquo;s quantum computing strategy?</li>
<li>What are the main use cases you&rsquo;re seeing your platform used for?</li>
<li>Who is using your services?</li>
</ul>

Citi's Tahmid Quddus Islam is joined by Michael Brett, Principal Specialist to discuss Quantum Computing in the High Performance Computing group at Amazon Web Services.

Future of Quantum Computing & the Cloud with Amazon Web Services

Generative AI holds tremendous potential to transform work across industries and boost overall productivity. In fact, Citi research analysts take the view that Generative AI can not only bring the power of AI itself to the masses but accelerate the very democratization of innovation. As such, it’s a game changer, they say. ChatGPT has become the fastest growing consumer application in history (Time to reach 100 million users worldwide) © 2023 Citigroup Inc. No redistribution without Citigroup’s written permission Source: Citi Research, SimilarWeb, OpenAI Generative AI potentially represents the latest inflection point in the evolution of AI © 2023 Citigroup Inc. No redistribution without Citigroup’s written permission Source: Citi Research, IDC Its impact will be far reaching, the report says. Public markets: The reverberations have already been felt across public markets–from Alphabet shares slumping in February to Nvidia shares surging. Private markets: Equity funding going to Generative AI firms rose more than 70% YoY in 2022, according to data from CB Insights. The research firm notes that three of the top 5 largest funding rounds in the March quarter this year went to generative AI companies. Public policy: Policy makers are trying to keep step. For example Italian regulators banned ChatGPT for almost a month earlier this year while the EU parliament passed the AI act with a big majority. Cybersecurity: Generative AI could be a force multiplier for cyber vendors as it amplifies the ability of the masses (i.e., less sophisticated IT and security professionals) to assess threats in a timely manner as complex security situations are now simplified. Generative AI, the analysts say, could solve for the talent shortage (estimated ~3.5M positions that need to be filled globally) that the security industry currently faces. Generative AI Technology Value Stack © 2023 Citigroup Inc. No redistribution without Citigroup’s written permission. Source: Citi Research Artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos. It builds on exponential increases in the size and capabilities of deep learning models, made possible thanks to high-performance computing (HPC) power and richer datasets. Further, we see Google’s innovations in Transformers and diffusion models now serve as the foundational basis for LLMs and Generative AI. According to a recent Accenture analysis based on US jobs data, nearly 40% of working hours across industries can be impacted by Large Language Models (LLMs). Based on the same analysis, Accenture also notes that in 5 out of 22 occupation groups, Generative AI can affect more than half of all hours worked. Generative AI will transform work across industries © 2023 Citigroup Inc. No redistribution without Citigroup’s written permission. Source: Citi Research, Accenture The redeployment of worker time (gained via automation and/or augmentation using Generative AI) into other activities could meaningfully boost overall productivity for years to come. According to a recent McKinsey analysis, Generative AI could add labour productivity growth of 0.1 to 0.6 percent annually through 2040. That’s trillions of additional dollars to the global economy The report points out that consumers have not only enthusiastically embraced Generative AI, but also have high trust-levels for Generative AI-based interactions - recent studies also support this view. Generative AI acceptance and trust: As noted earlier, the fact that ChatGPT has become the fastest growing consumer application in history illustrates that consumers have enthusiastically embraced Generative AI. However, we believe they also have high trust-levels for Generative AI-based interactions – multiple recent studies support our view and below we share findings from one such study carried out by Capgemini based on a sample of ~8600 respondents across multiple countries that suggests that ~73% of the respondents trust content written by Generative AI. Generative AI: Assessing the risk/reward — The team also outlines in detail how to assess the risk/reward associated with Generative AI via a two-stage framework. In the first stage, they aim to identify companies that are “affected” vs. others that are not, as opposed to simply tagging them as “winners” and “losers”. In the next stage, they look to gauge those “affected” based on two principles explained in full in the full report. Generative AI: Impact Across Supersectors — The team then leverages contributions from Citi’s supersectors to assess Generative AI’s adoption curve, as well as those where Generative AI poses a potentially material risk to business models. Generative AI: Challenges & regulation — The key challenges in the team’s view include those centered around bias, inequality, authenticity, infringements as well as the more debated one underpinned by existential concerns. The emergence of Generative AI has unsurprisingly seen AI as a broader topic become a firm focus for policy makers around the world. However, the regulatory path taken so far has varied. Given the stakes involved, we do believe policy & governance evolution will play a defining role. Generative AI: Top-down perspectives — Citi’s strategists observe that the current hype around AI is nothing in comparison to what they have seen in the previous equity bubbles. Meanwhile, Citi Research’s ESG team emphasizes that it is incredibly important to understand the potential limitations of Generative AI and utilize it with caution. For more information on this subject, and if you are a Velocity subscriber, please see the full report, first published on July 10th here Global Equity - AI Unleashed: Generative AI Impact and Citi’s GAIN Baskets. And for more on AI please see these recent items and more besides on the ICG website What You Need to Know About AI Regulation How Will Artificial Intelligence Change Education? AI Is Coming to a Data Centre Near You How AI is Turbocharging Sports Tech AI Time: Artificial Intelligence is Driving Progress in Autonomous Vehicles Citi Global Insights (CGI) is Citi’s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click here.

Generative AI holds tremendous potential to transform work across industries and boost overall productivity.
In fact, Citi research analysts take the view that Generative AI can not only bring the power of AI itself to the masses but accelerate the very democratization of innovation.
As such, it&rsquo;s a game changer, they say.
ChatGPT has become the fastest growing consumer application in history (Time to reach 100 million users worldwide) 
&nbsp;
<img src="/rcs/v1/media/citigpa/akpublic/storage/retrieveMediaFile/64b554a05e118134f6cae46d.png" width="892" height="424" />
&copy; 2023 Citigroup Inc. No redistribution without Citigroup&rsquo;s written permission
Source: Citi Research, SimilarWeb, OpenAI
&nbsp;
Generative AI potentially represents the latest inflection point in the evolution of AI
<img src="/rcs/v1/media/citigpa/akpublic/storage/retrieveMediaFile/64b5558b5e118134f6cae475.png" />
&copy; 2023 Citigroup Inc. No redistribution without Citigroup&rsquo;s written permission
Source: Citi Research, IDC 
Its impact will be far reaching, the report says.&nbsp;
<ul>
<li>Public markets: The reverberations have already been felt across public markets&ndash;from Alphabet shares slumping in February to Nvidia shares surging.</li>
</ul>
<ul>
<li>Private markets: Equity funding going to Generative AI firms rose more than 70% YoY in 2022, according to data from CB Insights. The research firm notes that three of the top 5 largest funding rounds in the March quarter this year went to generative AI companies.</li>
</ul>
<ul>
<li>Public policy: Policy makers are trying to keep step. For example Italian regulators banned ChatGPT for almost a month earlier this year while the EU parliament passed the AI act with a big majority.</li>
</ul>
<ul>
<li>Cybersecurity: Generative AI could be a force multiplier for cyber vendors as it amplifies the ability of the masses (i.e., less sophisticated IT and security professionals) to assess threats in a timely manner as complex security situations are now simplified. Generative AI, the analysts say, could solve for the talent shortage (estimated ~3.5M positions that need to be filled globally) that the security industry currently faces.</li>
</ul>
&nbsp;
Generative AI Technology Value Stack
<img src="/rcs/v1/media/citigpa/akpublic/storage/retrieveMediaFile/64b557605a2139265a958242.png" width="978" height="582" />
&copy; 2023 Citigroup Inc. No redistribution without Citigroup&rsquo;s written permission.
Source: Citi Research
Artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos. It builds on exponential increases in the size and capabilities of deep learning models, made possible thanks to high-performance computing (HPC) power and richer datasets. Further, we see Google&rsquo;s innovations in Transformers and diffusion models now serve as the foundational basis for LLMs and Generative AI.
According to a recent Accenture analysis based on US jobs data, nearly 40% of working hours across industries can be impacted by Large Language Models (LLMs). Based on the same analysis, Accenture also notes that in 5 out of 22 occupation groups, Generative AI can affect more than half of all hours worked.
Generative AI will transform work across industries 
<img src="/rcs/v1/media/citigpa/akpublic/storage/retrieveMediaFile/64b557fe5e118134f6cae4be.png" width="950" height="530" />
&copy; 2023 Citigroup Inc. No redistribution without Citigroup&rsquo;s written permission.
Source: Citi Research, Accenture
The redeployment of worker time (gained via automation and/or augmentation using Generative AI) into other activities could meaningfully boost overall productivity for years to come.
According to a recent McKinsey analysis, Generative AI could add labour productivity growth of 0.1 to 0.6 percent annually through 2040. That&rsquo;s trillions of additional dollars to the global economy
The report points out that consumers have not only enthusiastically embraced Generative AI, but also have high trust-levels for Generative AI-based interactions - recent studies also support this view.
<ul>
<li>Generative AI acceptance and trust: As noted earlier, the fact that ChatGPT has become the fastest growing consumer application in history illustrates that consumers have enthusiastically embraced Generative AI. However, we believe they also have high trust-levels for Generative AI-based interactions &ndash; multiple recent studies support our view and below we share findings from one such study carried out by Capgemini based on a sample of ~8600 respondents across multiple countries that suggests that ~73% of the respondents trust content written by Generative AI.</li>
</ul>
<ul>
<li> Generative AI: Assessing the risk/reward &mdash; The team also outlines in detail how to assess the risk/reward associated with Generative AI via a two-stage framework. In the first stage, they aim to identify companies that are &ldquo;affected&rdquo; vs. others that are not, as opposed to simply tagging them as &ldquo;winners&rdquo; and &ldquo;losers&rdquo;. In the next stage, they look to gauge those &ldquo;affected&rdquo; based on two principles explained in full in the full report.</li>
</ul>
<ul>
<li> Generative AI: Impact Across Supersectors &mdash; The team then leverages contributions from Citi&rsquo;s supersectors to assess Generative AI&rsquo;s adoption curve, as well as those where Generative AI poses a potentially material risk to business models.</li>
</ul>
<ul>
<li> Generative AI: Challenges &amp; regulation &mdash; The key challenges in the team&rsquo;s view include those centered around bias, inequality, authenticity, infringements as well as the more debated one underpinned by existential concerns. The emergence of Generative AI has unsurprisingly seen AI as a broader topic become a firm focus for policy makers around the world. However, the regulatory path taken so far has varied. Given the stakes involved, we do believe policy &amp; governance evolution will play a defining role.</li>
</ul>
<ul>
<li> Generative AI: Top-down perspectives &mdash; Citi&rsquo;s strategists observe that the current hype around AI is nothing in comparison to what they have seen in the previous equity bubbles. Meanwhile, Citi Research&rsquo;s ESG team emphasizes that it is incredibly important to understand the potential limitations of Generative AI and utilize it with caution.</li>
</ul>
For more information on this subject, and if you are a Velocity subscriber, please see the full report, first published on July 10th here <a href="https://www.citivelocity.com/t/r/eppublic/2kgmj" target="_blank" rel="noopener" data-link-source="tiny">Global Equity - AI Unleashed: Generative AI Impact and Citi&rsquo;s GAIN Baskets</a>.
And for more on AI please see these recent items and more besides on the<a href="https://www.citigroup.com/global/insights" target="_blank" rel="noopener" data-link-source="tiny"> ICG website</a>
<a href="https://www.citigroup.com/global/insights/global-insights/ai-time-what-you-need-to-know-about-ai-regulation-" target="_blank" rel="noopener" data-link-source="tiny">What You Need to Know About AI Regulation</a>
<a href="https://www.citigroup.com/global/insights/global-insights/how-will-artificial-intelligence-change-education" target="_blank" rel="noopener" data-link-source="tiny">How Will Artificial Intelligence Change Education?</a>
<a href="https://www.citigroup.com/global/insights/global-insights/ai-is-coming-to-a-data-centre-near-you-" target="_blank" rel="noopener" data-link-source="tiny">AI Is Coming to a Data Centre Near You</a>
<a href="https://www.citigroup.com/global/insights/global-insights/ai-is-coming-to-a-data-centre-near-you-" target="_blank" rel="noopener" data-link-source="tiny">How AI is Turbocharging Sports Tech</a>
<a href="https://www.citigroup.com/global/insights/global-insights/ai-is-coming-to-a-data-centre-near-you-" target="_blank" rel="noopener" data-link-source="tiny">AI Time: Artificial Intelligence is Driving Progress in Autonomous Vehicles </a>&nbsp;
Citi Global Insights (CGI) is Citi&rsquo;s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click <a href="https://ir.citi.com/6A3IURUaezPxFLppsgdBkqidjLaLn558JwHISYaDZcTfE9XMRB1isDDDVorqrxpR%2fTnEi4RUCl8%3d" target="_blank" rel="noopener" data-link-source="tiny">here</a>.
&nbsp;

A recent report from Citi Research’s Amit Harchandani lays out how the team views generative AI and it’s potential to drive profound transformation across a range of industries. 

The Mighty Transformational Power of Generative AI 

Download Report

Technology advances seem to be dominating the headlines. There are new ways to search the web using artificial intelligence and machine learning, alternate payment systems using blockchain and digital currency, and innovative ways to socialize gaming, and shop using the metaverse. In most cases, the advances have been facilitated by increasing computing speeds that enable faster calculations as well as better connectivity, but all are based on existing computing technology. But that is all about to change. The next phase of computing — quantum computing — is getting closer to becoming practically useful as we are quickly coming to a point where quantum computers will be able to perform valuable tasks faster, more efficiently, or cheaper than classical computers. Quantum computing breaks away from traditional classical computing using quantum mechanics as a base. If you made it through physics class in high school or college, you might remember that quantum mechanics as a daunting concept associated with geniuses like Albert Einstein, Niels Bohr, and Max Planck. But you don’t have to be a rocket scientist to start thinking about how quantum computing can revolutionize industry and society. And given the speed that quantum computing is progressing, we believe now is the time to for nation-states, corporates, and market participants to start getting ready for its arrival. In the report that follows, we look at what quantum computing is and what its advantages are compared with classical computing in terms of optimization, machine learning, simulation, and cryptography. We then apply those advantages to specific industries to highlight areas where quantum computing can materially advance processes from logistics and drug discovery to portfolio optimization and cybersecurity. Most importantly, we set out steps that nation-states and corporates can begin implementing in preparation for the arrival of quantum computing. Setting up appropriate funding to encourage research and development is important on a national scale, as is ensuring education and training to avoid a talent skills gap. Corporates should improve their awareness of how quantum computing will affect their industry, create impact assessments, and contextualize opportunities.

&nbsp;
Technology advances seem to be dominating the headlines. There are new ways to search the web using artificial intelligence and machine learning, alternate payment systems using blockchain and digital currency, and innovative ways to socialize gaming, and shop using the metaverse. In most cases, the advances have been facilitated by increasing computing speeds that enable faster calculations as well as better connectivity, but all are based on existing computing technology.&nbsp;
But that is all about to change. The next phase of computing &mdash; quantum computing &mdash; is getting closer to becoming practically useful as we are quickly coming to a point where quantum computers will be able to perform valuable tasks faster, more efficiently, or cheaper than classical computers. Quantum computing breaks away from traditional classical computing using quantum mechanics as a base. If you made it through physics class in high school or college, you might remember that quantum mechanics as a daunting concept associated with geniuses like Albert Einstein, Niels Bohr, and Max Planck. But you don&rsquo;t have to be a rocket scientist to start thinking about how quantum computing can revolutionize industry and society. And given the speed that quantum computing is progressing, we believe now is the time to for nation-states, corporates, and market participants to start getting ready for its arrival.
In the report that follows, we look at what quantum computing is and what its advantages are compared with classical computing in terms of optimization, machine learning, simulation, and cryptography. We then apply those advantages to specific industries to highlight areas where quantum computing can materially advance processes from logistics and drug discovery to portfolio optimization and cybersecurity.
Most importantly, we set out steps that nation-states and corporates can begin implementing in preparation for the arrival of quantum computing. Setting up appropriate funding to encourage research and development is important on a national scale, as is ensuring education and training to avoid a talent skills gap. Corporates should improve their awareness of how quantum computing will affect their industry, create impact assessments, and contextualize opportunities.

Why Quantum Computing Is a Big Deal Computing is at an inflection point. After five decades of increasing computational power by Moore's Law (i.e., doubling the number of transistors per chip every 2 years), the growth rate of classical computing is reaching its physical limit. At the same time, the capabilities of quantum computers (QCs) are advancing at a "doubly exponential" rate &mdash; in line with Neven's Law &mdash; and are close to generating commercial value.

Computing is at an inflection point. After five decades of increasing computational power by Moore's Law (i.e., doubling the number of transistors per chip every 2 years), the growth rate of classical computing is reaching its physical limit. At the same time, the capabilities of quantum computers (QCs) are advancing at a "doubly exponential" rate &mdash; in line with Neven's Law &mdash; and are close to generating commercial value.

Why Quantum Computing Is a Big Deal

How Big Could Quantum Computing Become? Total addressable market (TAM) estimates for quantum computing vary widely &mdash; ranging in 2027 from $700 million to $8.6 billion. Venture capital investment in the QC space has been strong but still pales in comparison to investment in artificial intelligence (AI).

Total addressable market (TAM) estimates for quantum computing vary widely &mdash; ranging in 2027 from $700 million to $8.6 billion. Venture capital investment in the QC space has been strong but still pales in comparison to investment in artificial intelligence (AI).

How Big Could Quantum Computing Become?

How Will Quantum Computing Disrupt Industry? Quantum computing will likely solve practical problems faster, cheaper, or more effectively than classical computers in four broad areas &mdash; optimization, machine learning, simulations, and cryptography. Three of these attributes offer significant upside for numerous industries, including Manufacturing &amp; Logistics, Artificial Intelligence, Healthcare, Energy &amp; Climate, and Finance. However, with cryptography, QCs post a potential threat to the cryptographic standards that underpin computer systems and cryptocurrencies.

Quantum computing will likely solve practical problems faster, cheaper, or more effectively than classical computers in four broad areas &mdash; optimization, machine learning, simulations, and cryptography. Three of these attributes offer significant upside for numerous industries, including Manufacturing &amp; Logistics, Artificial Intelligence, Healthcare, Energy &amp; Climate, and Finance. However, with cryptography, QCs post a potential threat to the cryptographic standards that underpin computer systems and cryptocurrencies.

How Will Quantum Computing Disrupt Industry?

Preparing for Quantum Due to the exponential scaling power of quantum computers, by the time they offer a practical advantage to business, the gap between early adopters and those using only classical computing will widen at an increasingly accelerated pace. Now it the time to prepare for the transition to capitalize on opportunities and safeguard against risk. To take advantage of the opportunity we suggest government and corporates should prepare in the following ways:

Due to the exponential scaling power of quantum computers, by the time they offer a practical advantage to business, the gap between early adopters and those using only classical computing will widen at an increasingly accelerated pace. Now it the time to prepare for the transition to capitalize on opportunities and safeguard against risk. To take advantage of the opportunity we suggest government and corporates should prepare in the following ways:

Preparing for Quantum

Technology advances seem to be dominating the headlines. There are new ways to search the web using artificial intelligence and machine learning, alternate payment systems using blockchain and digital currency, and innovative ways to socialize gaming, and shop using the metaverse. In most cases, the advances have been facilitated by increasing computing speeds that enable faster calculations as well as better connectivity, but all are based on existing computing technology. But that is all about to change. The next phase of computing — quantum computing — is getting closer to becoming practically useful as we are quickly coming to a point where quantum computers will be able to perform valuable tasks faster, more efficiently, or cheaper than classical computers. Quantum computing breaks away from traditional classical computing using quantum mechanics as a base. If you made it through physics class in high school or college, you might remember that quantum mechanics as a daunting concept associated with geniuses like Albert Einstein, Niels Bohr, and Max Planck. But you don’t have to be a rocket scientist to start thinking about how quantum computing can revolutionize industry and society. And given the speed that quantum computing is progressing, we believe now is the time to for nation-states, corporates, and market participants to start getting ready for its arrival. In the report that follows, we look at what quantum computing is and what its advantages are compared with classical computing in terms of optimization, machine learning, simulation, and cryptography. We then apply those advantages to specific industries to highlight areas where quantum computing can materially advance processes from logistics and drug discovery to portfolio optimization and cybersecurity. Most importantly, we set out steps that nation-states and corporates can begin implementing in preparation for the arrival of quantum computing. Setting up appropriate funding to encourage research and development is important on a national scale, as is ensuring education and training to avoid a talent skills gap. Corporates should improve their awareness of how quantum computing will affect their industry, create impact assessments, and contextualize opportunities. Why Quantum Computing Is a Big Deal Computing is at an inflection point. After five decades of increasing computational power by Moore's Law (i.e., doubling the number of transistors per chip every 2 years), the growth rate of classical computing is reaching its physical limit. At the same time, the capabilities of quantum computers (QCs) are advancing at a "doubly exponential" rate &mdash; in line with Neven's Law &mdash; and are close to generating commercial value. How Big Could Quantum Computing Become? Total addressable market (TAM) estimates for quantum computing vary widely &mdash; ranging in 2027 from $700 million to $8.6 billion. Venture capital investment in the QC space has been strong but still pales in comparison to investment in artificial intelligence (AI). How Will Quantum Computing Disrupt Industry? Quantum computing will likely solve practical problems faster, cheaper, or more effectively than classical computers in four broad areas &mdash; optimization, machine learning, simulations, and cryptography. Three of these attributes offer significant upside for numerous industries, including Manufacturing &amp; Logistics, Artificial Intelligence, Healthcare, Energy &amp; Climate, and Finance. However, with cryptography, QCs post a potential threat to the cryptographic standards that underpin computer systems and cryptocurrencies. Preparing for Quantum Due to the exponential scaling power of quantum computers, by the time they offer a practical advantage to business, the gap between early adopters and those using only classical computing will widen at an increasingly accelerated pace. Now it the time to prepare for the transition to capitalize on opportunities and safeguard against risk. To take advantage of the opportunity we suggest government and corporates should prepare in the following ways:

The newness and complexity of quantum computing is a challenge for stakeholders, but fostering awareness of what these machines can achieve could help with preparation and execution. The debate around the arrival of quantum advantage will continue, and it will appear at different times for different use cases. When it does, despite the upskilling and technology integration that will be necessary, quantum computing is likely to scale exponentially.


Moving Quickly From Theory to Reality

The newness and complexity of quantum computing is a challenge for stakeholders, but fostering awareness of what these machines can achieve could help with preparation and execution. The debate around the arrival of quantum advantage will continue, and it will appear at different times for different use cases. When it does, despite the upskilling and technology integration that will be necessary, quantum computing is likely to scale exponentially.

Quantum Computing 

Key topics discussed: How can quantum computing improve conventional machine learning models? What are the biggest challenges in AI that quantum computers could help overcome? What industries could Quantum Machine Learning be applied to? What does this mean for Generative AI? What new use cases could Quantum Generative AI lead to?

Key topics discussed:
<ul type="disc">
<li>How can quantum computing improve conventional machine learning models?</li>
<li>What are the biggest challenges in AI that quantum computers could help overcome?</li>
<li>What industries could Quantum Machine Learning be applied to?</li>
<li>What does this mean for Generative AI?</li>
<li>What new use cases could Quantum Generative AI lead to?</li>
</ul>

Following on from the Quantum Computing GPS report, Tahmid Quddus Islam, Citi Global Insights  in conversation with  Jack Hidary, CEO, SandBoxAQ.