This paper presents a new technique based on artificial neural networks (ANNs) to correct power factor. A synchronous motor controlled by the neural controller was used to handle the problem of reactive power compensation of the system, in order to correct power factor. In this paper, the electrical system and the neural controller were simulated using MATLAB. The results have shown that the presented technique overcomes the problems in conventional compensators (using static capacitors) such as time delay and step changes of reactive power besides to the fast compensation compared to the technique with capacitors groups.