SHANGHAI, Sept. 18 (Xinhua) -- China has the second-largest number of Artificial Intelligence (AI) companies in the world, trailing only the United States, according to a blue paper published Monday.

The blue paper was published by Gartner, an information technology research and advisory company, and the China Academy of Information and Communications Technology (CAICT), in Shanghai at the ongoing World Artificial Intelligence Conference 2018.

"The number of AI-related companies in China continues to grow and now ranks second in the world," said Liu Duo, president of CAICT.

She said the number of AI-related patent filings has hiked in China since 2015 and the scale of the AI market has also developed drastically, especially concerning voice and image recognition technology.

Beijing, Shanghai, Guangdong, Zhejiang, and Jiangsu are regions where domestic AI companies are developing the fastest, Liu added.

Despite the fast development of the industry, Liu also warned companies about potential ethics and legal risks the technology may bring about.

"As AI empowers our daily lives and production, we need to try to avoid controversies or harmful effects it may cause," said Liu.

Phil Todd, managing Vice President of Gartner, said his company has seen a drastic increase of AI-related consultations in recent years, but research covering over 3,000 companies showed that only four percent of them have invested in and utilize AI technology.

"Some technologies are at the peak of inflated expectations. When they were implemented, they would crash and face difficulties," said Todd, adding that the key to AI application is to choose the right business and suit the customers' needs.