Bank of America sees quantum market hitting $80 billion by 2035
Strategist Haim Israel argues that AI integration is speeding up quantum hardware development, pulling the timeline for encryption-breaking machines closer to 2030.
By David Marshall ·
A senior strategist at Bank of America believes the integration of artificial intelligence with quantum computing is creating a feedback loop that will accelerate breakthroughs in both fields. Haim Israel, who leads the bank's global thematic research team, stated that this combination could transform industries including healthcare and finance.
The bank estimates that the quantum computing industry, which has already surpassed $1 billion in annual revenue, is on a trajectory to reach approximately $15 billion by the end of the decade. By 2035, that figure is projected to climb to $80 billion. These growth figures come as the timeline for Q-Day, the point at which quantum computers can break widely used encryption methods, moves closer. Bank of America has now estimated this milestone will arrive in 2030.
Israel explained that AI is helping researchers overcome long-standing technical hurdles in quantum systems. Specifically, the technology is being used to improve control over quantum bits, or qubits, and reduce error rates. He noted that 2022 marked an inflection point where qubit counts rose while errors fell. Conversely, quantum technology may eventually address the processing limitations that currently hold back advanced AI development.
The strategist described the current state of the industry as comparable to the period before the widespread adoption of ChatGPT. While the sector already has an established ecosystem of hardware and software developers, Israel argued that quantum computing will likely remain concentrated in a small number of specialized systems rather than becoming a widely distributed consumer technology.
Potential applications for the technology span healthcare, financial services, chemicals, energy, industrial production, and logistics. Israel said companies could use complex calculations to improve efficiency and accelerate research. However, he noted that significant technical and commercial hurdles remain before the industry can deliver on its full promise.
Israel also addressed the regulatory environment, stating that there is not a lot of government intervention in the sector. He compared the situation to nuclear energy, where the technology can be used for electricity or weapons, and emphasized that responsibility currently rests with the institutions developing the tools. Companies are already creating internal safeguards, but governments are working to catch up with the pace of development.
The relationship between the two technologies is becoming increasingly important as AI models grow in size and complexity. Training these systems requires substantial computing resources, which quantum computers could eventually help provide. Israel summarized the dynamic by saying that AI helped build quantum, and quantum is now bringing AI to the next level.
