Disclosed herein are systems, computer-implemented methods, and computer-readable storage media for generating personalized user models. The method includes receiving automatic speech recognition (ASR) output of speech interactions with a user, receiving an ASR transcription error model characterizing how ASR transcription errors are made, generating guesses of a true transcription and a user model via an expectation maximization (EM) algorithm based on the error model and the respective ASR output where the guesses will converge to a personalized user model which maximizes the likelihood of the ASR output. The ASR output can be unlabeled. The method can include casting speech interactions as a dynamic Bayesian network with four variables: (s), (u), (r), (m), and encoding relationships between (s), (u), (r), (m) as conditional probability tables. At each dialog turn (r) and (m) are known and (s) and (u) are hidden.