Without the excitation system the AC alternator would have no way of building its voltage as it starts to rotate, nor would not be able to regulate its voltage to the pre-set nominal level while running at its rated speed. So, without an excitation system, an AC alternator would be useless for its purpose.

What happens if excitation fails in alternator?

If the excitation of the generator fails, suddenly there will be no more magnetically locking between rotor and rotating magnetic field of stator. But still the governor will supply same mechanical power to the rotor due to this sudden magnetic unlocking; the rotor will be accelerated beyond the synchronous speed.

What is the purpose of exciting the alternator?

The main purpose of exciter in a generator(alternator) is to provide stationary rotating magnetic field. Which is used to induce the e.m.f in the armature coil. So, DC power is given to exciter and the exciter is nothing but a coil, and the exciter creates a magnetic field.