Technical Superiority Without Institutional Readiness: The War of the Currents as a Historical Precedent for AI Governance

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-09-21
DOI
https://doi.org/10.5281/zenodo.22879898
Primary Topic
Ethics and Social Impacts of AI
Type
preprint
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preprint

Technical Superiority Without Institutional Readiness: The War of the Currents as a Historical Precedent for AI Governance

Alfredo Merlet
Zenodo (CERN European Organization for Nuclear Research)
Ethics and Social Impacts of AI
preprint

Technical Superiority Without Institutional Readiness: The War of the Currents as a Historical Precedent for AI Governance

Alfredo Merlet
preprint en

Abstract

This working paper argues that technical superiority is neither a necessary nor a sufficient condition for the diffusion of a new technology, and that the gap between technical capability and institutional readiness — the organizational, financial, and legal infrastructure required to convert an invention into a durable system — is a more reliable predictor of which technologies succeed. The argument is developed through a single historical case: the "War of the Currents" between Nikola Tesla's and George Westinghouse's alternating-current (AC) system and Thomas Edison's direct-current (DC) system, and the later collapse of Tesla's Wardenclyffe wireless-transmission project. Alternating current prevailed commercially despite Edison's better-funded opposition campaign, because Westinghouse supplied the institutional infrastructure — patent consolidation, standardization, capital access, and legal defense — that Tesla's invention alone could not provide. Wardenclyffe failed for the mirror-image reason: Tesla could not translate technical vision into a financing structure that J. P. Morgan and other investors could underwrite. The paper reframes this historical episode as an early instance of the institutional-readiness gap that the author's ongoing research program documents empirically in contemporary artificial-intelligence governance, and situates it explicitly alongside the author's related working papers on adaptation and human-capital readiness. The paper is conceptual and illustrative rather than causal: it draws on a single, well-documented historical case to motivate a framework, not to test it statistically.

Zenodo (CERN European Organization for Nuclear Research)
Alba Graduate Business School, The American College of Greece (GR), Instituto de Investigaciones en Ciencias de la Salud (AR), Instituto Superior de Artes y Ciencias de la Comunicación (CL), Universidad de Sevilla (ES)
Industry, innovation and infrastructure
Ethics and Social Impacts of AI
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