To visualize currents as flow of electrons can help a lot when it comes to more complicated issues, particularly in connection with moving bodies and relativity. E.g., the homopolar generator is treated in very many textbooks in a what that's quite difficult to understand. For a simple and correct treatment, see the Feynman Lecture. This problem is, however, also related to the fact that very often Faraday's Law in integral form is incompletely stated. But that doesn't answer the question.
So let's see, how to understand the question on AC from the point of view of the simplified classical microscopic theory. In a conducting material (metals) you have a certain amount of quasi-free conduction electrons with density [itex]n[/itex]. They are, however, subject to friction due to collisions with impurities in the crystal lattice etc. So an effective equation of motion for low-frequency low-intensity electromagnetic fields is
[tex]m \dot{\vec{v}}+m \gamma \vec{v}=-e \vec{E}(t).[/tex]
Here, we have assumed that the ciruit is small compared to the typical wavelength of the field so that we can assume the the electric field is homogenous along the wire and that the velocity of the electrons is very small compared to the speed of light so that you can neglect the magnetic component of the Lorentz force and use the Newtonian expression for momentum instead of the relativistic one.
To interpret this equation further, we first look for the Green's function of the linear differential operator on the left-hand side. Since we want to describe causal signal propagation, it should be the retarded Green's function, i.e., we look for a solution of
[tex]\dot{G}(t) + \gamma G(t)=\delta(t), \quad G(t) =g(t) \Theta(t),[/tex]
where [itex]\Theta[/itex] is the Heaviside unit-step function. Plugging in this ansatz and using [itex]\dot{\Theta}(t)=\delta(t)[/itex] gives
[tex][\dot{g}(t) + \gamma g(t)] \Theta(t)+g(0) \delta(t)=\delta(t).[/tex]
This means that we need [itex]g(0)=1[/itex] and
[tex]\dot{g}+\gamma g=0 \; \Rightarrow\; g(t)=\exp(-\gamma t).[/tex]
Thus we have
[tex]G(t)=\Theta(t) \exp(-\gamma t).[/tex]
The solution of the original equation then is
[tex]\vec{v}(t)=-\frac{e}{m} \int_{\mathbb{R}} \mathrm{d} t' G(t-t') \vec{E}(t).[/tex]
The current density is
[tex]\vec{j}=-e n \vec{v}=\frac{e^2 n}{m} \int_{\mathbb{R}} \mathrm{d} t' G(t-t') \vec{E}(t).[/tex]
Let's apply this to a constant electric field first. Then we get
[tex]\vec{j}=\frac{e^2 n \vec{E}}{m} \int_{-\infty}^t \mathrm{d} t' \exp[-\gamma (t-t')]=\frac{e^2 n E}{\gamma}=\sigma \vec{E}.[/tex]
This gives a nice microscopic approximation for conductivity [itex]\sigma[/itex].
For AC that's not very different, i.e., you just have to evaluate
[tex]\vec{j}=\frac{e^2 n \vec{E}_0}{m} \int_{-\infty}^t \mathrm{d} t' \exp[-\gamma(t-t')]\cos(\omega t)=\frac{e^3 n \vec{E}_0}{m} \frac{\gamma \cos(\omega t)+\omega \sin(\omega t)}{\omega^2+\gamma^2}.[/tex]
This shows that there is a phase shift between current and electric field due to damping. What we calculate here is of course the stationary state of the circuit, because we switch on the electric field at [itex]t \rightarrow \infty[/itex]. As you see it's indeed as expected a harmonic motion of the electrons in the external AC field.
In Fourier space the AC case is even simpler. Defining the Fourier transform of a quantitiy in the form
[tex]\tilde{f}(\omega)=\int_{\mathbb{R}} \mathrm{d} t \exp(\mathrm{i} \omega t) f(t) \; \Leftrightarrow \; f(t)=\int_{\mathbb{R}} \frac{\mathrm{d} \omega}{2 \pi} \exp(-\mathrm{i} \omega t) \tilde{f}(\omega),[/tex]
you have
[tex]F(t) =[f*g](t)=\int_{\mathbb{R}} \mathrm{d t'} f(t-t') g(t') \; \Leftrightarrow \; \tilde{F}(t)=\tilde{f}(\omega) \tilde{g}(\omega),[/tex]
which is known as the convolution theorem.
Now
[tex]\tilde{G}(\omega)=\int_{\mathbb{R}} \mathrm{d} \omega \exp(\mathrm{i} \omega t) \Theta(t) \exp(-\gamma t)=\frac{1}{\gamma - \mathrm{i} \omega}.[/tex]
Thus in frequency space we have
[tex]\tilde{\vec{j}}(\omega)=\frac{n e^2}{m} \frac{1}{\gamma-\mathrm{i} \omega} \tilde{\vec{E}}(\omega) \; \Rightarrow \sigma(\omega)=\frac{n e^2}{m (\gamma-\mathrm{i} \omega)}.[/tex]
In frequency space you can express Ohm's Law for AC as for DC but with a complex [itex]\omega[/itex]-dependent conductivity.