Yes the lights (head, tail and brake light + Indicators if you have them) are AC, as the kit comes with a new regulator/rectifier its best to move the light circuit over to the DC they actually work better and you will blow less globes.
I have never tried to run the lights AC with the trail tech system.
If you are going to use this kit its not quite plug and play as its for KTM's, from memory there's not much to installing it .
The last one I fitted was about 7 years ago and its still going with no problems