A DC motor uses direct current as a power source and consists of components like a split ring commutator, permanent magnet, and brushes to convert electrical energy into rotational mechanical energy. An AC motor uses an alternating current power source and a slip ring commutator to allow the current direction in its coils to change, enabling the rotor to rotate continuously in one direction within a magnetic field. Both motor types convert input electrical power to output rotational motion but differ in their power sources and commutation methods.