Conducting polymer electrodes based on poly(3,4-ethylenedioxythiophene doped with poly(styrenesulfonate) (PEDOT:PSS) are evaluated as transducers to record extracellular signals in cell populations. The performance of the polymer electrode is compared with a gold electrode. A small-signal impedance analysis shows that in the presence of an electrolyte, the polymer electrode establishes for frequencies below 100 Hz a higher capacitive electrical double layer at the electrode/electrolyte interface. Furthermore, the polymer/electrolyte interfacial resistance is several orders of magnitude lower than the resistance of the gold/electrolyte interface. The polymer low interfacial resistance minimizes the intrinsic thermal noise and increases the system sensitivity. The ultra-sensitivity of the polymer-based transducer system was demonstrated by recording the electrical activity of cancer cells of the nervous system.