Businesses are pouring millions into quantum computing projects, seeking a competitive edge and preparing for future encryption threats.

In 2025, corporate spending on quantum computing reached $300 million, surpassing the combined investment from research labs and governments for the first time, making businesses the largest source of funding. While a clear timeline for when quantum computing will disrupt multi-billion-dollar industries remains uncertain, many companies are now placing substantial bets on the technology, partly driven by the regret of missing the early wave of artificial intelligence.

A report from Boston Consulting Group (BCG) reveals that total corporate spending on quantum technologies in 2025 hit $300 million, exceeding the combined investment from research institutions and governments for the first time. This marks a turning point in industry enthusiasm for commercializing the technology. Companies like HSBC Holdings plc, Allstate Corporation, and Ernst & Young Global Limited (EY) all state that now is the right time to invest. By starting early, they aim to secure talent, data infrastructure, and practical applications, ensuring they are ready to seize the opportunity when the technology matures and becomes commercially viable.

Some of these investments are also defensive in nature, focusing on shoring up systems and applications against the future risk that quantum computers will break existing encryption methods. "Even if I can't pinpoint the exact timing of the technology's arrival, if it's a potential future reality, I must start preparing now," said Tom Wilson, Chairman, President, and CEO of Allstate. Matt Langione, a managing director and global leader of BCG's quantum technology practice, noted that the failure of many businesses to adequately prepare for the opportunities presented by advanced AI models is a key driver for this early-stage quantum investment.

The BCG study surveyed 275 of the world's top 25 companies by market value across 11 industries, including healthcare, financial services, and energy. The survey found that 62% of these companies are investing at least $1 million annually in quantum computing and have established dedicated project teams. Corporate investment is divided into two main areas: internal spending, such as hiring quantum experts, and external spending, which includes co-developing applications with vendors and leasing cloud-based quantum computers for experiments.

Quantum computers are fundamentally different from traditional systems, using quantum physics to solve complex problems that are beyond the capabilities of even the most powerful supercomputers today. In the future, this technology could reshape various sectors, including finance, shipping logistics, drug discovery, basic scientific research, data encryption, insurance pricing, and internet distribution. The timeline for large-scale deployment is still uncertain. Langione stated that the combination of increased capital market interest in quantum technology and the lessons learned from being unprepared for the AI boom has accelerated corporate investment this year.

Where the investment is happening

Allstate: Competing for an Advantage

Wilson explained that Allstate currently has a 10-person quantum research team and plans to expand it next year. The researchers are exploring practical applications of quantum technology to create a competitive advantage. This includes using quantum models to evaluate complex risk factors and their correlations, enabling more accurate insurance policy pricing that truly reflects the risk level of a given business. He noted that a quantum computer could theoretically solve complex optimization problems involving a vast number of variables, such as the specific type and age of roof tiles on a home, helping Allstate to price certain insurance products with high precision. "In our industry, accuracy is the source of value," he said.

HSBC: Addressing Quantum Security Risks

Philip Intalà, Global Head of Quantum at HSBC, said the bank has a team of dozens of researchers and engineers based in London, Singapore, and India. HSBC previously gained attention with a bond optimization application. Using an IBM quantum computer, the solution improved the accuracy of predicting whether a trade would be executed at the quoted price by up to 34% compared to traditional algorithms. HSBC has since signed another agreement with IBM to evaluate the technical feasibility and economic benefits of scaling this solution. However, the team's recent work has shifted more towards defense: preparing to protect the bank's systems and applications from the risk that a practical quantum computer will break existing encryption. "We feel a sense of urgency. We must complete the migration of our systems before a quantum computer capable of breaking encryption is developed," Intalà said.

Ernst & Young: Investing in Quantum Hardware

While most companies are trialing quantum computing power through cloud services from vendors like IBM and Amazon Web Services, a few, including EY, are choosing to purchase quantum computers directly. The professional services firm announced last month that it had acquired a quantum computer to be deployed in Toronto. EY is forming a dedicated team to build applications and develop training programs to advise clients on quantum technology. EY did not disclose the equipment supplier or the purchase price but confirmed the investment is part of its $3 billion plan for frontier technologies, including AI. Raj Sharma, EY's Global Growth and Innovation Leader, said that increasing demand from major clients for quantum technology consulting drove the hardware purchase. "Nobody wants to be left behind," he said.