An adaptive variational quantum imaginary time evolution (AVQITE) approach is introduced that yields efficient representations of ground states for interacting Hamiltonians on near-term quantum computers. It is based on McLachlans variational principle applied to imaginary time evolution of variational wave functions. The variational parameters evolve deterministically according to equations of motions that minimize the difference to the exact imaginary time evolution, which is quantified by the McLachlan distance. Rather than working with a fixed variational ansatz, where the McLachlan distance is constrained by the quality of the ansatz, the AVQITE method iteratively expands the ansatz along the dynamical path to keep the McLachlan distance below a chosen threshold. This ensures the state is able to follow the quantum imaginary time evolution path in the system Hilbert space rather than in a restricted variational manifold set by a predefined fixed ansatz. AVQITE is used to prepare ground states of H$_4$, H$_2$O and BeH$_2$ molecules, where it yields compact variational ansatze and ground state energies within chemical accuracy. Polynomial scaling of circuit depth with system size is demonstrated through a set of AVQITE calculations of quantum spin models. Finally, it is shown that quantum Lanczos calculations can also be naturally performed alongside AVQITE without additional quantum resource costs.
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