Actually as a device, the alternator is a very old device, predating the auto industry.
Alternator by definition produces an "alternating", or AC output. The technology uses some sort of magnet, usually as the rotor, although the magnet as the fixed coil was used in a number of designs. The rotating magnet is commonly known as a "rotating field" design.
The magnet can be a perrmanent magnet, as mentioned, or an electromagnet. The latter is known as as wound field or rotor design. Wound rotor units have the advantage of being able to vary or regulate the output voltage of the alternator by varying the magnet's strength. This comes at greater complexity and cost. A permanent magnet design is cheaper to make, but the output voltage varies with the RPM of the shaft. Some smaller AC power generators use permanent magnet rotors, since the RPM is basically constant, for 60 Hz output.
The king of the alternator is the brushless alternator. It has an electromagnet field coil that is fixed, which energizes (excites in correct terms) a small alternator coil on the rotor. The output of this small alternator is rectified by diodes on the rotor and feeds DC to the wound rotor of the main alternator which is down the shaft a bit further. The main alternator output comes off of the coils in the stator that are coupled with the main wound rotor. To vary the output voltage, the electromagnet field voltage of the small alternator (known as an exciter) is varied. This varies the resulting DC voltage to the main rotor field, and thus the AC output. Complex and expensive, but no brushes to maintain and the ability to regulate the output voltage.
I do not know who was the first, but the use in cars was to meet higher power demands (perhaps due to the A/C). The alternator design can produce more current as lower RPMs, if it is designed to due such. The other advantages were a smaller size and lower production cost. I suspect that the latter issue was what motivated the automakers.
paul