Telecom giant AT&T has developed a software system designed to analyze and transcribe calls from customers, CNN reported.

The analysis of the system also provides helpful feedback to customer service representatives of companies in dealing with customer queries.

For instance, when a company receives a barrage of calls from multiple customers complaining about the quality of service, the system activates and begins to chart the calls depending on their location.

Knowing the location of customers allow service reps to immediately detect the problem and explain it to them.

In addition, the system can also read the emotions of callers based on the tone of their voice and word usage. Through an interactive database, the system provides the operators a collection of responses based on the emotional state of customers, according to Fox CT.

The tool allows us to do this kind of processing in very close to real time," Mazin Gilbert, AT&T Labs' assistant vice president for technical research said.

"If a customer is unhappy, we want to do something at that moment in time as opposed to after the conversation is over," he added.

Aside from assisting with customer queries, the software system can also be used by companies as a marketing tool. Through its call-analysis feature, the system analyzes customers' preferences through the keywords they use. It then suggests new products or services that are related to their interests.

The system also assists AT&T by keeping track of how often people discuss the company by going through posts and comments made on Facebook, Twitter and other online social networking sites, Yahoo reported.

"We're grabbing real data and the system is learning on its own, updating itself," Gilbert explained. "The whole idea is to lower the barrier to allow anybody who has an application or service that generates data to see how they can improve the experience."

For now, the newly developed software system is only being used within the facilities of AT&T. However, the company has already received numerous requests for various companies to install the software into their customer service system.