The present invention relates to an artificial intelligence based system and method for moderating interaction between interacting users. The attempt is to improve emotional intelligence of users so that a seasoned response and reaction is observed during interaction, even if situations of conflict arise. The disclosure, thus, provides for a mixed reality glass powered assistant that displays the moderated expressions of a customer to the service provider. For the same, the analytical engine upon determining the negative emotions of customer, transforms the image of customer and adds smile to his face, which is presented to the service provider via a mixed reality glass so that he responds back to the customer in a positive manner.