Interior permanent magnet (IPM) machines with hairpin windings have attracted significant attention in EV applications owing to their low DC resistance and excellent thermal capabilities. In this paper, we present a comprehensive investigation of AC winding losses in IPM machines for traction applications, including analytical modeling, the influence of design parameters, and finite element (FE) verification. The proposed analytical model can predict the trends in AC winding losses for any number of bar conductors and slot/pole combinations. The results of the parametric study, obtained via the analytical model, are presented to examine the effects of key design parameters, such as conductor width and height, phase arrangement, and slot-per-pole-per-phase (SPP). To incorporate more practical issues into the analysis of IPM machines with hairpin windings, extensive FE simulations were conducted. The results indicated that the AC winding losses decrease with an increasing number of conductor layers and phases inside the slot.