impact of ai - fujitsu
TRANSCRIPT
![Page 1: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/1.jpg)
Impact of and Quantum Computingin the smart machine age
AI Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
Your future digital ldquosmartrdquo organisation
1Copyright copy FUJITSU 2018
Handcraftship
The smart Machine Age
1780Industry 10
Copyright copy FUJITSU 2018
Animals
Information
Paper
all is becoming smart
Agrarian SocietyHunting Society
Machines
Machine Age
Vehicles
Knowledge
Low Cost Paper
1900Industry 20
1970Industry 30
Copyright copy FUJITSU 2018
Industrial Society
TODAY
Smart Machines - Smart Robots
Smart Autonomous Vehicles
Intelligence
Digital
The Second Machine Age
Smart Machine Age
Copyright copy FUJITSU 2018
Industry 40 Society 50
Information Society Smart Society
Turing testHow Smart is AI
Copyright copy FUJITSU 2018
automatic speech recognition + translation
sound samples
Is she real
Copyright copy FUJITSU 2018
Context recognition
Copyright copy FUJITSU 2018
AI Components
Knowledge Processing Decision amp SupportSensing amp Recognition
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 2: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/2.jpg)
Your future digital ldquosmartrdquo organisation
1Copyright copy FUJITSU 2018
Handcraftship
The smart Machine Age
1780Industry 10
Copyright copy FUJITSU 2018
Animals
Information
Paper
all is becoming smart
Agrarian SocietyHunting Society
Machines
Machine Age
Vehicles
Knowledge
Low Cost Paper
1900Industry 20
1970Industry 30
Copyright copy FUJITSU 2018
Industrial Society
TODAY
Smart Machines - Smart Robots
Smart Autonomous Vehicles
Intelligence
Digital
The Second Machine Age
Smart Machine Age
Copyright copy FUJITSU 2018
Industry 40 Society 50
Information Society Smart Society
Turing testHow Smart is AI
Copyright copy FUJITSU 2018
automatic speech recognition + translation
sound samples
Is she real
Copyright copy FUJITSU 2018
Context recognition
Copyright copy FUJITSU 2018
AI Components
Knowledge Processing Decision amp SupportSensing amp Recognition
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 3: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/3.jpg)
Handcraftship
The smart Machine Age
1780Industry 10
Copyright copy FUJITSU 2018
Animals
Information
Paper
all is becoming smart
Agrarian SocietyHunting Society
Machines
Machine Age
Vehicles
Knowledge
Low Cost Paper
1900Industry 20
1970Industry 30
Copyright copy FUJITSU 2018
Industrial Society
TODAY
Smart Machines - Smart Robots
Smart Autonomous Vehicles
Intelligence
Digital
The Second Machine Age
Smart Machine Age
Copyright copy FUJITSU 2018
Industry 40 Society 50
Information Society Smart Society
Turing testHow Smart is AI
Copyright copy FUJITSU 2018
automatic speech recognition + translation
sound samples
Is she real
Copyright copy FUJITSU 2018
Context recognition
Copyright copy FUJITSU 2018
AI Components
Knowledge Processing Decision amp SupportSensing amp Recognition
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 4: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/4.jpg)
Machines
Machine Age
Vehicles
Knowledge
Low Cost Paper
1900Industry 20
1970Industry 30
Copyright copy FUJITSU 2018
Industrial Society
TODAY
Smart Machines - Smart Robots
Smart Autonomous Vehicles
Intelligence
Digital
The Second Machine Age
Smart Machine Age
Copyright copy FUJITSU 2018
Industry 40 Society 50
Information Society Smart Society
Turing testHow Smart is AI
Copyright copy FUJITSU 2018
automatic speech recognition + translation
sound samples
Is she real
Copyright copy FUJITSU 2018
Context recognition
Copyright copy FUJITSU 2018
AI Components
Knowledge Processing Decision amp SupportSensing amp Recognition
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 5: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/5.jpg)
TODAY
Smart Machines - Smart Robots
Smart Autonomous Vehicles
Intelligence
Digital
The Second Machine Age
Smart Machine Age
Copyright copy FUJITSU 2018
Industry 40 Society 50
Information Society Smart Society
Turing testHow Smart is AI
Copyright copy FUJITSU 2018
automatic speech recognition + translation
sound samples
Is she real
Copyright copy FUJITSU 2018
Context recognition
Copyright copy FUJITSU 2018
AI Components
Knowledge Processing Decision amp SupportSensing amp Recognition
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 6: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/6.jpg)
Turing testHow Smart is AI
Copyright copy FUJITSU 2018
automatic speech recognition + translation
sound samples
Is she real
Copyright copy FUJITSU 2018
Context recognition
Copyright copy FUJITSU 2018
AI Components
Knowledge Processing Decision amp SupportSensing amp Recognition
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 7: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/7.jpg)
automatic speech recognition + translation
sound samples
Is she real
Copyright copy FUJITSU 2018
Context recognition
Copyright copy FUJITSU 2018
AI Components
Knowledge Processing Decision amp SupportSensing amp Recognition
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 8: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/8.jpg)
Copyright copy FUJITSU 2018
AI Components
Knowledge Processing Decision amp SupportSensing amp Recognition
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 9: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/9.jpg)
AIIn simple terms
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Smart Movers
SoftwareRobots
Smart Do-ers
AutonomousVehicles
Information basedRobots
Machines forbdquoDo-Actionsldquo
Copyright copy FUJITSU 2018
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 10: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/10.jpg)
Smart Machines
Artificial Intelligence
Computer Power
Digital Data
Copyright copy FUJITSU 2018
1672 ndash Gulliverrsquos travel
1950 ndash Alan Turing proposes turing test
1951- First AI programs
1969 ndash Stanford Shakey the robot
1969 ndash First AI conference on Stanford
1997 ndash Chess champion
2002 - Roomba ndash Vacuum cleaner
2005 ndash ASIMO walk as human
2009 ndash First autonomous car
2011 ndash Jeopardy Winner
2014 ndash Smartphone assistants
2015- Go champion
2017 ndash Poker champion
2018 ndash Language processing outscores top humans at Stanford
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 11: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/11.jpg)
What can you do with AI Today
Looking for Persons (face recognition)
Detecting Specific Suspicious People(looking for people by the color of the clothing etc )
Detecting Unattended Objects
Congestion Detection
Customer Count at Shop
Optimization of Patrols
Illegal Parking
Predict demand
Analyze performance problemhellip
Discover insight patternhellip
Detect incident opportunity
Find people contenthellip
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 12: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/12.jpg)
Vehicle Type Recognition11
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 13: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/13.jpg)
Facial Recognition12
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 14: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/14.jpg)
13
SMART PARKING
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 15: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/15.jpg)
Navigate DriverProvides Information for Decision-makingShows Available Parking
Occupancy by Area Trend
Occupancy by Slot Image Capture
Smart Parking
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 16: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/16.jpg)
TPU
DLU
Project brainwave
True North
Volta
Nervana
AI OptimizedHardwareCPU
AI Patents
DSSTNE
BIG SUR
Deep Learning Platforms
Market overview
AI
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 17: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/17.jpg)
16 copy 2018 FUJITSU
Published by the Top10 Banks Worldwide
Virtual Customer interaction
Customer recommendations
Anti-fraud
Smart Advisors
Virtual Assistant and Self service
Anti money laundering
Real time automated trading
Automate legal work
Automated credit decisions credit score
Compliance effort (Regtech)
Virtual customer interaction
Chatbots for claims
Calculate Insurance Payout
Blended human-AI Chatbot
Intelligent authentication
Intelligent Quick Claim settlement
Self Service Chatbot
Health Apps connected to Sensors
Support investment decision
Banks
Artificial Intelligence Current ndash Finance Cases
Insurers
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 18: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/18.jpg)
17 copy 2018 FUJITSU
Question by talking
Change question (invoice) to the text formBanking
Customers
Answer text
Speech synthesis
Calls by Phone
Read the text and start search by AI
AI ENGINE
AI Chatbot
Voice recognitionengine
(voice to text)
Speech synthesisengine
(text to speech)
Virtual agent - Chatbot with voice
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 19: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/19.jpg)
18 copy 2018 FUJITSU
ChinaChina is investing at least $7 billion through 2030 including $2 billion for a research park in Beijing The Chinese government foresees a $150 billion AI industry by that time and has the most comprehensive national plan to become a leader in the technology Chinese startups also received 48 of all funding for AI investments
European UnionAn April 25 report from the European Commission outlines a $24 billion (euro20 billion) investment between 2018 and 2020 The Commission expects to have a fully fleshed out plan for AI investment by the end of 2018
RussiaVladimir Putin has made some grandiose comments on artificial intelligence saying that the leader in AI will ldquorule the worldrdquo Many of Russiarsquos AI demonstrations are military in nature like AI-assisted fighter jets and automated artillery
CanadaCanada saw governmentrsquos role in AI research before many others and made a $125 million commitment to AI research in March 2017
USThe US has no central AI policy but individual projects are funded by military and paramilitary departments like DARPA and IARPA While little is being done on a national level AI industry and research is led by academia and private industry in the United States
GermanyChancellor Angela Merkel spoke April 22 to the importance of competing with China in AI due to Chinarsquos aggressive goals of becoming the worldrsquos leading nation in the technology but the German government hasnrsquot committed to investing
FranceThe French government will invest $18 billion (euro15 billion) in AI research until 2022 president Emmanuel Macron announced in late March
ldquoNational AI Government policies and investmentsrdquo
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 20: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/20.jpg)
19 copy 2018 FUJITSU
Artificial Intelligence
Computer Power
Digital Data
Cloud
Quantum Computing
Edge
Smart Machines
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 21: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/21.jpg)
1968 Supercomputers are slower then your smartphone (Galaxy 7 or iPhone 7)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 22: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/22.jpg)
2018 for Quantum is
as 1968 for traditional systems
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 23: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/23.jpg)
22 copy 2018 FUJITSUUnclassified
Why beyond classical computing
The Navier-Stokes equations
Its surprisingly difficult to explain what happens when you stir cream into your morning coffee
NP Problem
Travelling salesmen problem Longest route or verify shortest route
Easy problems versus difficult problems
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 24: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/24.jpg)
Cryptography
Unbreakable Encryption
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 25: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/25.jpg)
24 copy 2018 FUJITSUUnclassified
Quantum inspired Computer Hardware
1977 1981- NowGeneral Purpose Computer
Now
Digital Annealer
A quantum inspired computer hardwarethat can rapidly solve combinatorial optimisation
problems using existing semiconductor technology
2025 - 2030 Quantum Computer
Brain-Like Computer
Traditional Digital Annealer Quantum Computer Brain-like
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 26: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/26.jpg)
25 copy 2018 FUJITSUUnclassified
Rules powered by Nature
5 Minutes - Quantum Physics for CxOrsquos
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 27: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/27.jpg)
26 copy 2018 FUJITSU
Superposition
Traditional QUBIT QUANTUM+BIT
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or
ldquo0rdquo and ldquo1rdquoQUANTUM STATE
Superposition0 1
Probability
GATES
OPERATORS
00 01 10 11
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 28: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/28.jpg)
27 copy 2018 FUJITSU
Quantum Entanglement
QUBIT
Spooking action communication at a distance ndashDirect interaction
QUBITSPLITTED
PAIR
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 29: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/29.jpg)
28 copy 2018 FUJITSU
Quantum Tunnelling
Side One Side Two
NetTennis Court
QUBIT
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 30: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/30.jpg)
29 copy 2018 FUJITSU
Quantum Gate Gate model Quantum Computers perform calculations by
manipulating quantum evolution via application of gates mdasha basic quantum circuit operating on a number of qubits
Use Cases larger scale problems which includes cryptography AI search other areas still being investigated
Technically challenging to build as it is extremely hw specific
Quantum Annealing Using quantum physics to identify the minimum energy points
through mathematical algorithms Application Combinatory optimisation problems amp sampling Use Cases Drug Discovery Logistics Portfolio Risk Management
Machine Learning etc
What is Quantum Computing
Technology utilising quantum mechanics phenomena
0 1
ldquo0rdquo or ldquo1rdquo DIGITAL STATE
or 01ldquo0rdquo and ldquo1rdquo
QUANTUM STATE
Superposition Entanglement Quantum tunnelling
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 31: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/31.jpg)
30 copy 2018 FUJITSU
Digital Annealer
QuantumAnnealer
QuantumGate
Market overview
Quantum ldquoGates Annealing and
Inspiredrdquo
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
Please see last slide for Trademark Legal Notice Copyright copy FUJITSU 2018
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 32: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/32.jpg)
31 copy 2018 FUJITSU
What can all this power do
It can solve problems exponentially and in parallel
So what problems are exponentially complex
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 33: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/33.jpg)
32 copy 2018 FUJITSU
32
Selecting the shortest possible route Optimized results using the AnnealerCase in which traffic has been blocked
Degree of congestion
High
Low
High
Low
Degree of congestion
Degree of congestion
High
Low
High
Low
Degree of congestion
Optimized results using the Annealer
Degree of congestion
High
Low
High
Low
Degree of congestion
Finance | Traffic Route Optimization
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 34: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/34.jpg)
33 copy 2018 FUJITSU
Finance | Portfolio Risk Optimization
optimal returns from safe investment portfolios
The experiment which after successful testing is now being
implemented by the bank will see quantum-inspired computing power
used to help portfolio managers decide on the right composition for the
bankrsquos pound120bn high quality liquid assets (HQLAs) portfolio HQLAs are
assets such as cash and bonds that every UK bank must hold as a
buffer in case it runs into financial trouble
NatWest has begun testing with quantum computing power in order to
solve some of the most complex challenging time consuming and
expensive problems that the bank faces
httpswwwrbscomrbsnews201809natwest-begins-testing-with-quantum-computing-power-to-help-solvhtml
Using lsquoquantum-inspiredrsquo computing power the bankrsquos technology
team have completed a highly complex calculation that needs to be
undertaken regularly by the bank at 300 times the speed of a
traditional computer whilst providing an even higher degree of
accuracy
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 35: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/35.jpg)
34 copy 2018 FUJITSU
Digital AnnealerFinance Use-Cases
Initial examples
Non performing Loans
Optimal Trading
Credit scoring and classification
Optimise ATM cash management
Investment Portfolio optimization
Bank customer segmentation
Reinsurance Optimization
Capital Management
Catastrophe Risk Modeling
Supercharged AI
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 36: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/36.jpg)
Drs Ing PPM Huijbers
CTO Fujitsu Financial Services EMEIA
pascalhuijberstsfujitsucom
CO-CREATE LEARN AND EXPERIMENT NOW
Up Next Use Cases and Quantum Annealing
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 37: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/37.jpg)
36 copy Copyright 2018 FUJITSU
Why look beyond classical computing
Logistics Traffic route optimization
Continuous redistribution of position data for vehicles Identifying optimal route Time-critical optimization
Disaster Recovery
Complex stochastic problem that combines Resource allocation Warehouse routing Parallel fleet routing
Finance and Economic Policy
Dealing with 10^36 combinations or more Portfolio risk optimization Credit risk scoring ATM - Cash replenishment
Chemical amp Material Science
Finding the best fitting out of a billion possible combinations Drug design Molecular similarity
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 38: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/38.jpg)
37 copy Copyright 2018 FUJITSU
Quantum AnnealingAn Approach for combinatorial optimization Annealing
Classical approach
Blocks are placed randomly then the entire system is ldquoshakenrdquo and the shaking is gradually reduced
Blocks are placed in sequence starting over if it doesnrsquot work Repeated until a solution is found
Annealing
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 39: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/39.jpg)
38 copy Copyright 2018 FUJITSU
Quantum Inspired | Digital AnnealingThe technology of solving combinatorical optimization problems effectively overcoming the challenges of quantum annealing systems using lsquoquantum-inspiredrsquo digital circuit based architecture
Inspired by quantum parallelism (superposition)The DA evaluates all subsequent candidate states arising from all1024 possible bit flips in parallel
Inspired by quantum entanglement The full-connectivity of the DA enables quick interaction across the whole system state reducing the overhead of mapping a real problem to hardware
Inspired by quantum tunneling Unique hardware architecture simultaneously evaluates multiple energy levels akin to quantum tunneling in quantum annealing accelerating convergence
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 40: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/40.jpg)
39 copy Copyright 2018 FUJITSU
Quantum Annealing vs Digital Annealing
Commercially available Quantum Annealing computers requires a quantum state
Escapes the local minimum energy state through the feature of Quantum tunneling
Maintaining quantum coherence requires expensiveshielding and is nonetheless hard to sustain
Needs a cryogenic environment operating at a few milli-kelvin degrees thereby increasing complexityand costs
Limitation in solving large scale problems due to limited number of connections between qubits
Escapes the local minimum energy state by offset created with DA hardware architecture
Parallel evaluation of candidate states across 1024bit leads to multiplicative speed up amp high precision
Traditional digital bit-based energy efficient architecture working at room temperature that fits in a rack
Architecture with full-connectivity with 16-bit precision and
26-bit biases precision computation
Quantum-inspired technology available on digital circuit based technology
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 41: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/41.jpg)
40 copy Copyright 2018 FUJITSU
CY 2018 CY 2019
1st Generation
2nd Generation
1024 bits
Full interconnection
16-bit precision
65536 gradations
Up to 8192 bits
Full interconnection
Up to 64-bit precision
1845 quintillion gradations
DAUDigital Annealing Unit
On-Premises
May 2018 DA Cloud Serviceintroduced in Japan
Next Generation
Large-scale
parallel-processing
1 million bit scale
Digital Annealer Road Map
Roadmap is subject to change without notice
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 42: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/42.jpg)
41 copy Copyright 2018 FUJITSU
Partnership with 1QBit
The worldrsquos top vendor providing Quantum computing software on WebREST API
MiddlewareMathematical formulae and algorithms for computation
HardwareDelivering processing that can solve problems with high speed and high precision
DA uses standard Quantum annealing API
(QUBO) hence eases transition without having to tweak customerrsquos core application
The most cost effective amp viable hardware in the market today
Existing 1QBit Quantum Annealing customers can easily transition to DA
Copyright 2018 Fujitsu
Limited
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 43: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/43.jpg)
42 copy Copyright 2018 FUJITSU
Use case | Comprehensive route optimization
Selecting the shortest possible route Optimized results using the Annealer
High
Low
Degree of congestion
40 reduction inTotal travel time
Recalculate within 1 secof changing conditions
Comprehensiveroute
optimization
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 44: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/44.jpg)
43 copy Copyright 2018 FUJITSU
Use case | Traffic Route Optimization
2
5
4
2
35
4
3
1
1
DepartureDestination
Comprehensive Route optimization to ensure no overlapped routes and ease traffic congestion
No of combinations of route candidates for 5 different pair of start and destination goal = 10100
Time taken by K supercomputer =1084 sec=138bn yrs
Digital Annealer can calculate in 1 second
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 45: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/45.jpg)
44 copy Copyright 2018 FUJITSU
Use case | Fast Job Shop Rescheduling
Production jobs are sequences of operations on machines
Scheduling due to conditions (operation order duration hellip)
Minimize overall production time
Fast replanning in dynamic factory
Solvable by annealing
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 46: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/46.jpg)
45 copy Copyright 2018 FUJITSU
Use case | Robot Positioning Optimization
Welding robots ldquovisitrdquo seam location
Seam can be welded in 2 directions
Find best welding directions and optimal roundtrip between endpoints
2119899minus1 119899 minus 1 possibilities
Solvable by annealing
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 47: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/47.jpg)
46 copy Copyright 2018 FUJITSU
Use case | Smart distributing
Optimized Placement of In-Stock Parts in Factories and Distribution Warehouses
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 48: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/48.jpg)
47 copy Copyright 2018 FUJITSU
Use case | Workforce optimization
Workforce planning in Factories and Distribution Warehouse
Condition examplebull Fulfil each shift work requestbull Minimize number of workforcebull Maximum workload per day 1 shiftbull No working across daysbull 2 Days off per week
7days 4 shiftday rarr 34 workers
DA optimized work shift plan with 29 workersand secured 5 workers for other tasks
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 49: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/49.jpg)
48 copy Copyright 2018 FUJITSU
Portfolio Management use cases
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 50: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/50.jpg)
49 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
1490
250
Traditional Method (MinimumVariance)
Quantum-inspired Hierarchical RiskParity
Maximum drawdown
Financial crisis 2008
Minimize portfolio risk using Quantum-Hierarchial risk parity potentially avoiding 2008 financial crisis
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 51: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/51.jpg)
50 copy Copyright 2018 FUJITSU
Use case | Portfolio Risk Optimization
Financial services benefit from Digital annealing by allocating capital optimally across a pool of assets by choosing from a lot of interconnected data points and dependencies
Vertical amp Use casesFinance
bull Portfolio risk optimizationbull Portfolio Governancebull Portfolio Modeling amp
Simulationbull Asset Valuation
Source Quantum-Inspired Hierarchical Risk Parity (1Qbit Whitepaper)
The average price of portfolios provided bybull MV minimum-variance optimizationbull IVP inverse-variance paritybull HRP hierarchical risk paritybull QHRP quantum-inspired versions of HRPas a function of time on the Commodity Trading Advisor (CTA) index
What it meansSharpe Ratio is a fundrsquos risk adjusted returns ie the fundrsquos return relative to the risk taken
Maximum Drawdown is an indicator of downside risk over a specified time period
QHRP based portfolio selection provides the highest sharpe ratio and lowest drawdown
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 52: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/52.jpg)
55 copy Copyright 2018 FUJITSU
300x faster than traditional computing
Higher degree of accuracy
Optimizing NatWestrsquos
pound120bn high quality liquid assets (HQLAs) portfolio
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 53: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/53.jpg)
56 copy Copyright 2018 FUJITSU
Services amp Solution
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 54: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/54.jpg)
57 copy Copyright 2018 FUJITSU
Our Human Centric Experience Design approach enables you tohellip
2
1
3
Understand your business challenge within the context of your strategy
4
Look at the issues through different lenses
Combine business and technology expertise to develop rapid outline concepts
Develop joint working plan for immediate experimentation
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 55: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/55.jpg)
58 copy Copyright 2018 FUJITSU
Engagement Model4 ingredients 4 steps
PeopleExperts from business and technology
DesignDevelop solutions
quickly for experimentation
PurposeFocus on a business
imperative
OutcomeDeliver value by implementing at
scale
Consultingaddress an imperative through collaborative engagement across the business
Co-Creationcoming up with ideas to resolve a challenge
Implementationexploring a range of potential opportunities
1
2
3
4 Concept developmentTen days support by digital annealer expert and adequate annealing performance from Fujitsu cloud service at fixed price
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 56: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/56.jpg)
59 copy Copyright 2018 FUJITSU
Various combinatorial optimization problems in
actual
On-Premise (Planned)
Technical Service
Cloud Service
Service Overview Cloud Service and Technical Service launched in 2018
Realize high speed processing for combinatorial optimization problems
ldquoFUJITSU Quantum-inspired Computing Digital Annealerrdquo To support customersrsquo Digital Annealer utilization
ldquoDigital Annealer Technical Servicerdquo
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 57: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/57.jpg)
60 copy Copyright 2018 FUJITSU
Digital Annealer Technical Service
Deployment Phase
Formulation
Operations Phase
QA Support
Maintenance amp Support
ldquoHand-in-Handrdquo technical service supporting customer to resolve challenges―Technical experts with advanced mathematics knowledge and data analysis capability
Converting issue into formula Application Design Application Development
Field Trial Support
Application Design Support
Building applications for usage with Digital Annealer
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
![Page 58: Impact of AI - Fujitsu](https://reader033.vdocuments.mx/reader033/viewer/2022042104/62569e78ca199906071ce975/html5/thumbnails/58.jpg)
Fujitsu Sans Light ndash abcdefghijklmnopqrstuvwxyz ABCDEFGHIJKLMNOPQRSTUVWXYZ
0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacutethorn
yumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-=[]rsquo~ltgt|
copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucircuumlyacute
thornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl
Fujitsu Sans Medium ndash abcdefghijklmnopqrstuvwxyz 0123456789 notrdquopound$^amp()_+-
=[]rsquo~ltgt| copyuml~iexclcentcurrenyenbrvbarsectumlordflaquoraquonot-
regmacrdegplusmnsup2sup3microparamiddotcedilsup1ordmfrac14frac12frac34iquestAgraveAacuteAcircAtildeAumlAringCcedilEgraveAEligEacuteEcircEumlIgraveIacuteIcircIumlETHNtildeOgraveOacuteOcircOtildeOumltimesOslashUgraveUacuteUcircUumlYacuteTHORNszligagraveaacuteacircatildeaumlaringaeligccedilegraveeacuteecirceumligraveiacuteicirciumlethntildeograveoacuteocircotildeoumldivideoslashugraveuacuteucirc
uumlyacutethornyumlĐıŒœŠšŸŽžƒʼˆˇˉ˙˚˛˜˝-‒ndashmdash―lsquorsquosbquoldquordquobdquodaggerDaggerbullhellippermillsaquorsaquoolinefrasl⁰⁴⁵⁶⁷⁸⁹₀₁₂₃₄₅₆₇₈₉eurotradeΩrarrpart∆prodsumminusradicinfinintasympnelegesdotlozfifl