Why a Canadian Bank is Trying to Predict Earthquakes with Quantum Computers
May 2, 2026 – 7:12 am
BMO has filed a provisional patent on a quantum algorithm for seismic forecasting and is deploying mobile branches to wildfire zones equipped with AI dispatch. The bank claims this approach represents the future of risk management.
Banks typically don’t deal with earthquakes; they focus on pricing risk. However, predicting seismic activity and managing associated risks are traditionally the domain of seismologists, governments, and specialized insurers. Bank of Montreal (BMO) aims to change this by leveraging quantum computing and artificial intelligence (AI).
In an interview with Bloomberg, published on May 1st, Kristin Milchanowski, BMO’s Chief AI and Quantum Officer, revealed the bank’s patent application for a quantum algorithm designed to aid earthquake forecasting. The same team is also using AI to deploy mobile banking units to communities affected by wildfires, such as those that hit parts of Los Angeles last year.
This move marks an unusual shift for a Tier 1 Canadian lender and serves a strategic purpose.
From Back Office to Backstop
BMO formalized its ambitions with the launch of the BMO Institute for Applied Artificial Intelligence & Quantum on April 9th. This enterprise-wide center brings together research, governance, and applied work in AI and quantum computing, technologies that have traditionally been at opposite ends of the maturity spectrum.
While AI is already integrated into various financial services, including fraud detection, credit scoring, and customer service, quantum computing remains largely experimental in banking workflows. Milchanowski leads the Institute as its founding director.
The Rationale
On paper, this appears to be corporate housekeeping. However, in practice, it’s a deliberate statement: BMO positions itself as a forward-thinking bank interested in both AI and quantum technologies.
The provisional patent, while not yet validated, highlights the bank’s commitment. Quantum algorithms are well-suited for complex problems involving high-dimensional optimization and combinatorial search, such as seismic forecasting. Although practical applications are still in their infancy, BMO’s exploration of these technologies signals a potential game-changer in risk management.