Lionel Martellini, a finance professor and director of the EDHEC Quantum Institute, recently discussed the intersection of physics and business. Martellini argues that future executives need a foundational understanding of quantum mechanics to navigate the coming wave of technological shifts and avoid falling for industry hype or misinformation.
Bridging the gap between physics and finance
Martellini followed a unique career path that eventually led him to lead the first quantum institute within a business school. Initially focused on finance, math, and statistics, he later pursued a PhD in physics during his 40s. He spent time working on gravitational waves and black holes before realizing that these two disparate worlds could merge.
By launching the EDHEC Quantum Institute, Martellini aims to ensure that quantum science is not restricted to a small circle of specialized experts. He believes that as second-generation technologies mature, they will impact every major industry. Preparing the next generation of decision-makers requires more than just high-level summaries; it requires a deep dive into how these tools change business models.
The current educational landscape often separates technology from leadership. Martellini argues that this divide is increasingly obsolete. Students at his institution are encouraged to become technology fluent, ensuring they can lead companies in an environment where AI and quantum computing are no longer niche topics. This hybridization of knowledge is a core pillar of his educational philosophy.
Developing a quantum narrative
The way society talks about quantum technology is often counterproductive. Experts frequently tell physics students to focus on the math rather than the meaning. Conversely, business professionals are often told that the subject is too mysterious for them to grasp. Martellini rejects both of these approaches.
He focuses on teaching fundamental principles like superposition and entanglement to non-scientists. By understanding the historical debates between figures like Einstein and Bohr, students gain a better perspective on the reality of the technology. This foundational knowledge helps them understand how speedups in computing are actually achieved.
Moving beyond the fear factor
Many discussions about quantum computing revolve around the risks to encryption and cybersecurity. While these are valid concerns, Martellini prefers to focus on the opportunities. He views the study of quantum mechanics as an invitation to embrace the complexity of the world rather than seeing things in black and white.
Even if a student never works directly with a quantum computer, the mental framework required to understand the field is valuable. It teaches people to think in terms of states and nuances. This intellectual growth is just as important as the technical applications themselves.
Identifying the dangers of quantum washing
A significant portion of Martellini’s work involves warning leaders about quantum washing. This term describes the tendency for companies to overpromise what the technology can currently do. Similar to greenwashing in the environmental sector, quantum washing can mislead investors and executives about the timeline for practical results.
One form of this trend involves overselling the benefits of current hardware, which is still in the noisy intermediate-scale quantum era. Many people are claiming advantages that do not yet exist in a stable, fault-tolerant way. This creates a disconnect between expectations and the actual state of the science.
Over-engineered use cases
Another subtle form of quantum washing involves creating problems specifically designed to be solved by quantum computers. Martellini points out that many papers on portfolio optimization assume conditions that do not exist in the real world. In actual financial practice, the process of selecting stocks and the process of optimizing their weights are separate steps.
Forcing these steps together just to demonstrate a quantum benefit is not useful for finance professionals. Leaders need to distinguish between theoretical academic exercises and practical tools that fit into existing workflows. Without this critical eye, companies risk wasting resources on solutions that do not address their core needs.
The importance of return on investment
Discussions about technical superiority often ignore the financial costs of implementation. Martellini emphasizes that a quantum advantage is only meaningful if it offers a positive return on investment. If the cost of running a quantum algorithm exceeds the profit it generates, it is not a viable business solution.
Business leaders must ask tough questions about the ROI of these new systems. They should not be swayed by the novelty of the hardware alone. A clear-headed approach to costs and benefits is the only way to integrate these technologies successfully into the corporate world.
Preparing for the future of financial services
The financial sector is often cited as the most likely early adopter of quantum technologies. While Martellini is cautious about short-term claims, he sees immense potential in the long term. Once fault-tolerant systems arrive, the impact on the industry will be transformational, affecting everything from risk assessment to complex pricing.
In the near term, special-purpose hardware like quantum annealers might offer some utility. However, Martellini notes that many current applications still feel like a solution searching for a problem. He encourages finance professionals to remain patient and focus on building the infrastructure needed for future breakthroughs.
Executive education and training
There is a growing demand for business professionals who are quantum-literate. Firms in the technology sector need CFOs, marketing directors, and HR managers who understand the stakes of the industry. These hires do not need to be engineers, but they must be able to speak the language of the scientists they work alongside.
Conversely, end users in aerospace and finance are starting to recognize the opportunity cost of waiting. While they may not feel an urgent need to retrain their entire staff today, they know the shift is inevitable. Getting ahead of the curve allows these organizations to be ready when the hardware finally reaches maturity.
Resources for the curious leader
Finding the right educational material remains a challenge for many executives. Most books are either too superficial or too dense with complex equations. Martellini is currently co-authoring a book to bridge this gap, specifically tailored for finance professionals who need depth without unnecessary jargon.
He believes that the best way to learn is through a structured approach that respects the reader’s intelligence. By providing the right tools, he hopes to empower leaders to make informed decisions about the future of their companies. The goal is to move from mystery to mastery.
Final reflections on the field
Martellini remains inspired by the giants of physics who started the first quantum revolution. He identifies Albert Einstein and Richard Feynman as key figures whose work continues to influence the modern world. Their ability to question fundamental reality serves as a model for how today’s leaders should approach technological change.
The path forward requires a mix of enthusiasm and skepticism. By fostering quantum awareness, Martellini is helping to ensure that the business community is a partner in the next scientific frontier rather than a bystander. Building this bridge is essential for the healthy development of both science and commerce.
