This paper is proposed hybrid artificial intelligent (HAI) controller based on the vector controlled induction motor drive system. The hybrid combination of fuzzy control and neural network will produce a powerful representation flexibility and numerical processing capability. Also, this paper is proposed speed estimation of induction motor using a closed-loop state observer. The rotor position is calculated through the stator flux position and an estimated flux value of rotation reference frame. A closed-loop state observer is implemented to compute the speed feedback signal. The results of analysis prove that the proposed control system has strong robustness to rotor parameter variation, and has good steady-state accuracy and transitory response.