Embodiments of the present invention provide an artificial neural network system for feature pattern extraction and output labeling. The system comprises a first spiking neural network and a second spiking neural network. The first spiking neural network is configured to autonomously learn complex, temporally overlapping features arising in an input pattern stream. Competitive learning is implemented as spike timing dependent plasticity with lateral inhibition in the first spiking neural network. The second spiking neural network is connected with the first spiking neural network through dynamic synapses, and is trained to interpret and label the output data of the first spiking neural network. Additionally, the labeled output of the second spiking neural network is transmitted to a computing device, such as a central processing unit for post processing.