Abstract:As financial fraud becomes increasingly complex, effective detection methods are essential. Quantum Machine Learning (QML) introduces certain capabilities that may enhance both accuracy and efficiency in this area. This study examines how different quantum feature map and ansatz configurations affect the performance of three QML-based classifiers-the Variational Quantum Classifier (VQC), the Sampler Quantum Neural Network (SQNN), and the Estimator Quantum Neural Network (EQNN)-when applied to two non-standardized financial fraud datasets. Different quantum feature map and ansatz configurations are evaluated, revealing distinct performance patterns. The VQC consistently demonstrates strong classification results, achieving an F1 score of 0.88, while the SQNN also delivers promising outcomes. In contrast, the EQNN struggles to produce robust results, emphasizing the challenges presented by non-standardized data. These findings highlight the importance of careful model configuration in QML-based financial fraud detection. By showing how specific feature maps and ansatz choices influence predictive success, this work guides researchers and practitioners in refining QML approaches for complex financial applications.
Abstract:Sentiment analysis is an essential component of natural language processing, used to analyze sentiments, attitudes, and emotional tones in various contexts. It provides valuable insights into public opinion, customer feedback, and user experiences. Researchers have developed various classical machine learning and neuro-fuzzy approaches to address the exponential growth of data and the complexity of language structures in sentiment analysis. However, these approaches often fail to determine the optimal number of clusters, interpret results accurately, handle noise or outliers efficiently, and scale effectively to high-dimensional data. Additionally, they are frequently insensitive to input variations. In this paper, we propose a novel hybrid approach for sentiment analysis called the Quantum Fuzzy Neural Network (QFNN), which leverages quantum properties and incorporates a fuzzy layer to overcome the limitations of classical sentiment analysis algorithms. In this study, we test the proposed approach on two Twitter datasets: the Coronavirus Tweets Dataset (CVTD) and the General Sentimental Tweets Dataset (GSTD), and compare it with classical and hybrid algorithms. The results demonstrate that QFNN outperforms all classical, quantum, and hybrid algorithms, achieving 100% and 90% accuracy in the case of CVTD and GSTD, respectively. Furthermore, QFNN demonstrates its robustness against six different noise models, providing the potential to tackle the computational complexity associated with sentiment analysis on a large scale in a noisy environment. The proposed approach expedites sentiment data processing and precisely analyses different forms of textual data, thereby enhancing sentiment classification and insights associated with sentiment analysis.
Abstract:Predicting loan eligibility with high accuracy remains a significant challenge in the finance sector. Accurate predictions enable financial institutions to make informed decisions, mitigate risks, and effectively adapt services to meet customer needs. However, the complexity and the high-dimensional nature of financial data have always posed significant challenges to achieving this level of precision. To overcome these issues, we propose a novel approach that employs Quantum Machine Learning (QML) for Loan Eligibility Prediction using Quantum Neural Networks (LEP-QNN).Our innovative approach achieves an accuracy of 98% in predicting loan eligibility from a single, comprehensive dataset. This performance boost is attributed to the strategic implementation of a dropout mechanism within the quantum circuit, aimed at minimizing overfitting and thereby improving the model's predictive reliability. In addition, our exploration of various optimizers leads to identifying the most efficient setup for our LEP-QNN framework, optimizing its performance. We also rigorously evaluate the resilience of LEP-QNN under different quantum noise scenarios, ensuring its robustness and dependability for quantum computing environments. This research showcases the potential of QML in financial predictions and establishes a foundational guide for advancing QML technologies, marking a step towards developing advanced, quantum-driven financial decision-making tools.
Abstract:The integration of fully homomorphic encryption (FHE) in federated learning (FL) has led to significant advances in data privacy. However, during the aggregation phase, it often results in performance degradation of the aggregated model, hindering the development of robust representational generalization. In this work, we propose a novel multimodal quantum federated learning framework that utilizes quantum computing to counteract the performance drop resulting from FHE. For the first time in FL, our framework combines a multimodal quantum mixture of experts (MQMoE) model with FHE, incorporating multimodal datasets for enriched representation and task-specific learning. Our MQMoE framework enhances performance on multimodal datasets and combined genomics and brain MRI scans, especially for underrepresented categories. Our results also demonstrate that the quantum-enhanced approach mitigates the performance degradation associated with FHE and improves classification accuracy across diverse datasets, validating the potential of quantum interventions in enhancing privacy in FL.
Abstract:The widespread deployment of products powered by machine learning models is raising concerns around data privacy and information security worldwide. To address this issue, Federated Learning was first proposed as a privacy-preserving alternative to conventional methods that allow multiple learning clients to share model knowledge without disclosing private data. A complementary approach known as Fully Homomorphic Encryption (FHE) is a quantum-safe cryptographic system that enables operations to be performed on encrypted weights. However, implementing mechanisms such as these in practice often comes with significant computational overhead and can expose potential security threats. Novel computing paradigms, such as analog, quantum, and specialized digital hardware, present opportunities for implementing privacy-preserving machine learning systems while enhancing security and mitigating performance loss. This work instantiates these ideas by applying the FHE scheme to a Federated Learning Neural Network architecture that integrates both classical and quantum layers.
Abstract:The growing computational demands of artificial intelligence (AI) in addressing climate change raise significant concerns about inefficiencies and environmental impact, as highlighted by the Jevons paradox. We propose an attention-enhanced quantum physics-informed neural networks model (AQ-PINNs) to tackle these challenges. This approach integrates quantum computing techniques into physics-informed neural networks (PINNs) for climate modeling, aiming to enhance predictive accuracy in fluid dynamics governed by the Navier-Stokes equations while reducing the computational burden and carbon footprint. By harnessing variational quantum multi-head self-attention mechanisms, our AQ-PINNs achieve a 51.51% reduction in model parameters compared to classical multi-head self-attention methods while maintaining comparable convergence and loss. It also employs quantum tensor networks to enhance representational capacity, which can lead to more efficient gradient computations and reduced susceptibility to barren plateaus. Our AQ-PINNs represent a crucial step towards more sustainable and effective climate modeling solutions.
Abstract:Financial market prediction and optimal trading strategy development remain challenging due to market complexity and volatility. Our research in quantum finance and reinforcement learning for decision-making demonstrates the approach of quantum-classical hybrid algorithms to tackling real-world financial challenges. In this respect, we corroborate the concept with rigorous backtesting and validate the framework's performance under realistic market conditions, by including fixed transaction cost per trade. This paper introduces a Quantum Attention Deep Q-Network (QADQN) approach to address these challenges through quantum-enhanced reinforcement learning. Our QADQN architecture uses a variational quantum circuit inside a traditional deep Q-learning framework to take advantage of possible quantum advantages in decision-making. We gauge the QADQN agent's performance on historical data from major market indices, including the S&P 500. We evaluate the agent's learning process by examining its reward accumulation and the effectiveness of its experience replay mechanism. Our empirical results demonstrate the QADQN's superior performance, achieving better risk-adjusted returns with Sortino ratios of 1.28 and 1.19 for non-overlapping and overlapping test periods respectively, indicating effective downside risk management.
Abstract:This study introduces the Quantum Federated Neural Network for Financial Fraud Detection (QFNN-FFD), a cutting-edge framework merging Quantum Machine Learning (QML) and quantum computing with Federated Learning (FL) to innovate financial fraud detection. Using quantum technologies' computational power and FL's data privacy, QFNN-FFD presents a secure, efficient method for identifying fraudulent transactions. Implementing a dual-phase training model across distributed clients surpasses existing methods in performance. QFNN-FFD significantly improves fraud detection and ensures data confidentiality, marking a significant advancement in fintech solutions and establishing a new standard for privacy-focused fraud detection.
Abstract:In this study, we explore the innovative domain of Quantum Federated Learning (QFL) as a framework for training Quantum Machine Learning (QML) models via distributed networks. Conventional machine learning models frequently grapple with issues about data privacy and the exposure of sensitive information. Our proposed Federated Quantum Neural Network (FedQNN) framework emerges as a cutting-edge solution, integrating the singular characteristics of QML with the principles of classical federated learning. This work thoroughly investigates QFL, underscoring its capability to secure data handling in a distributed environment and facilitate cooperative learning without direct data sharing. Our research corroborates the concept through experiments across varied datasets, including genomics and healthcare, thereby validating the versatility and efficacy of our FedQNN framework. The results consistently exceed 86% accuracy across three distinct datasets, proving its suitability for conducting various QML tasks. Our research not only identifies the limitations of classical paradigms but also presents a novel framework to propel the field of QML into a new era of secure and collaborative innovation.
Abstract:Integrating Quantum Convolutional Neural Networks (QCNNs) into medical diagnostics represents a transformative advancement in the classification of brain tumors. This research details a high-precision design and execution of a QCNN model specifically tailored to identify and classify brain cancer images. Our proposed QCNN architecture and algorithm have achieved an exceptional classification accuracy of 99.67%, demonstrating the model's potential as a powerful tool for clinical applications. The remarkable performance of our model underscores its capability to facilitate rapid and reliable brain tumor diagnoses, potentially streamlining the decision-making process in treatment planning. These findings strongly support the further investigation and application of quantum computing and quantum machine learning methodologies in medical imaging, suggesting a future where quantum-enhanced diagnostics could significantly elevate the standard of patient care and treatment outcomes.