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This study demonstrates a practical hybrid quantum-classical workflow for IT root cause analysis in banking, replacing a classical neural network head with a Variational Quantum Circuit to match baseline performance on NISQ hardware. The authors' key finding is that complex quantum readouts offer no measurable advantage over simple Pauli-Z expectation values, allowing the model to be optimized via gradient-free methods without error mitigation. This work provides concrete evidence for the viability of hybrid QGNNs in industrial settings while highlighting the current limitations of quantum expressivity on near-term devices.
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From IceCube to IT-Sphere: A Hybrid Quantum-Classical GNN for Banking IT Root Cause Analysis

arXiv2 min read

arXiv:2609.22822v1 Announce Type: cross Abstract: We present Hybrid Quantum Root Cause Analysis (HQ-RCA), an industrially grounded workflow for root cause analysis in banking IT operations, built on a hybrid Quantum Graph Neural Network (QGNN): the classical backbone of DynEdge (the IceCube neutrino-reconstruction GNN, which we call standalone DynEdge), with its classification head replaced by a Variational Quantum Circuit (VQC). On 13 months of anonymised IT data (13k alarm clusters) from a major European bank, the hybrid QGNN matches standalone DynEdge -- the strongest classical baseline -- on $F_1$, while standalone DynEdge leads the ranking metrics. A readout-sensitivity and layout-robustness study, analysed via Dimensional Expressivity Analysis (DEA), shows that the effective parameter dimensionality (rank) of the quantum observable has no measurable correlation with $F_1$; we therefore keep the simplest readout $\langle Z_0\rangle$ (the Pauli-$Z$ expectation on the first qubit), which in the deployed layout is rank-1, collapsing optimisation to a 1-D problem solvable by a gradient-free grid scan. Execution on IBM Heron r2 (no error mitigation) shows this gradient-free readout is executable on NISQ hardware after threshold recalibration.

Abstract:We present Hybrid Quantum Root Cause Analysis (HQ-RCA), an industrially grounded workflow for root cause analysis in banking IT operations, built on a hybrid Quantum Graph Neural Network (QGNN): the classical backbone of DynEdge (the IceCube neutrino-reconstruction GNN, which we call standalone DynEdge), with its classification head replaced by a Variational Quantum Circuit (VQC). On 13 months of anonymised IT data (13k alarm clusters) from a major European bank, the hybrid QGNN matches standalone DynEdge -- the strongest classical baseline -- on $F_1$, while standalone DynEdge leads the ranking metrics. A readout-sensitivity and layout-robustness study, analysed via Dimensional Expressivity Analysis (DEA), shows that the effective parameter dimensionality (rank) of the quantum observable has no measurable correlation with $F_1$; we therefore keep the simplest readout $\langle Z_0\rangle$ (the Pauli-$Z$ expectation on the first qubit), which in the deployed layout is rank-1, collapsing optimisation to a 1-D problem solvable by a gradient-free grid scan. Execution on IBM Heron r2 (no error mitigation) shows this gradient-free readout is executable on NISQ hardware after threshold recalibration.

3 pages (cover page + 2-page extended abstract), 4 figures. Accepted for publication in the Proceedings of the 2026 IEEE International Conference on Quantum Computing and Engineering (QCE26), Toronto, ON, Canada, 13-18 September 2026; Poster Track, paper ID POS2-1600. Author's accepted version; IEEE copyright notice on the first page

arXiv:2609.22822 [quant-ph]

(or arXiv:2609.22822v1 [quant-ph] for this version)

https://doi.org/10.48550/arXiv.2609.22822 arXiv-issued DOI via DataCite (pending registration)

Full text under the publisher's open licence · 236 words

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