A system and method for position sensorless control of an AC electric machine is disclosed. A drive system for driving an AC electric machine provides a primary current excitation to drive the AC electric machine, the primary current excitation comprising a current vector having a magnitude and angle. The drive system injects a carrier signal to the AC electric machine that is superimposed onto the current vector, with the carrier signal generating a carrier response signal responsive to the injected carrier signal. The drive system measures at least one magnetic alignment signature of the AC electric machine from the generated carrier response signal and controls an orientation of the current vector using the measured at least one magnetic alignment signature to operate the AC electric machine.