We present for the first time an experimental study on the droplet deformation induced by an AC electric field in droplet-based microfluidics. It is found that the deformation of the droplets becomes stronger with increasing electric field intensity and frequency. The measured electric field intensity dependence of the droplet deformation is consistent with an early theoretical prediction for stationary droplets. We also proposed a simple equivalent circuit model to account for the frequency dependence of the droplet deformation. The model well explains our experimental observations. In addition, we found that the droplets can be deformed repeatedly by applying an amplitude modulation (AM) signal.