In general AC clamp meters operate on the principle of current transformer(CT) used to pick up magnetic flux generated as a result of current flowing through a conductor. Assuming a current flowing through a conductor to be the primary current, you can obtain a current proportional to the primary current by electromagnetic induction from the secondary side(winding) of the transformer which is connected to a measuring circuit of the instrument. This permits you to take an AC current reading on the digital display(in the case of digital clamp meters) as illustrated by the block diagram.