An inductive sensor developed by Philips ATC has been used to study in-situ the austenite (γ) to martensite (α′) phase transformation kinetics during tensile testing in an AISI 301 austenitic stainless steel. A correlation between the sensor output signal and the volume fraction of α′-martensite has been found by comparing the results to the ex-situ characterization by magnetization measurements, light optical microscopy, and X-ray diffraction. The sensor has allowed for the observation of the stepwise transformation behavior, a not-well-understood phenomena that takes place in large regions of the bulk material and that so far had only been observed by synchrotron X-ray diffraction.