An Israeli hi-tech company said on Thursday that it has developed a technology that will "revolutionize" the international diamond industry by automatically evaluating the clarity grade and the price of diamonds.

Sarine Technologies, based in Ramat Gan city outside Tel Aviv, said in a statement that it is the first time a technology allows an "automated, objective and consistent clarity and color measurement and grading systems" for diamonds.

Figures show that incorrect grading of diamonds is common, with a general error rate of up to 20 percent.

The diamonds industry saw a growing mistrust by consumers due to wrong grading of gems and even artificial diamonds sold as natural stones.

"Customers are looking for a way that a diamond is graded based on facts objectively and accurately," said Uzi Levami, CEO of Sarine Technologies.

In a press conference on Thursday, Sarine said that commercialization of the new method is expected in mid 2017, after it will conclude its current large-scale testing in India.