Abstract In modern industries, enhancing the efficiency and performance of electric motors is a critical requirement. Pulse width modulation (PWM) inverters utilized to enhance the energy efficiency of electric motors generate complex shaft voltages and bearing currents, leading to bearing electrical erosion. This study proposes a new method for detecting high-frequency (HF) circulating current and electric discharge machining (EDM) current signals in bearings for electric motors. The proposed method utilizes common mode voltage (CMV) and bearing current data, analyzing the relationship between these signals. Subsequently, it applies filtering techniques and differentiation for signal preprocessing. The Interquartile Range (IQR) method is used to detect outliers, classify HF circulating current and EDM current signals, and perform time-series data clustering to determine the occurrence frequency and timing of EDM signals. Finally, the implementation outcomes of the proposed method are validated, and its classification efficacy is evaluated and benchmarked against established methodologies through a comprehensive performance analysis. The proposed technique is anticipated to be applicable to the maintenance and prediction of modern electric motors in future developments, contributing to enhanced durability and reliability.