Youngsters have traditionally found joy in using paints and pencils – but now they can also generate images and words by pressing a few keys on computers or phones.
Axel – who has illustrated many books for young readers such as The Gruffalo, Zog and The Highway Rat – is worried this will stifle creativity.
He said: “AI is a worrying development. I am all for kids drawing with pencils and paints and we need to protect this from AI.
“It is a worrying development and I do not know what the future will bring. But I would always defend people creating, rather than having something artificial.”
Asked if technology was likely to affect his career, he admitted: “I am ignoring that whole AI thing and maybe I am naive and stupid.
“I know if you say, ‘Do something in the style of Axel Scheffler’ then something will appear because they feed everything into the system.
“But so far I don’t feel threatened and I feel my publishers will still ask me to do the pictures rather than going to AI.”
The German artist, 67, also warned it is important to ensure future generations not only carry on reading books but also use their imaginations to make up and tell stories.
The illustrator added: “Storytelling is very much alive and literature is very much alive.
“Maybe people read less. But it is so essential for humans to read stories – and it’s essential to get them started at an early age. I was never any good at making up stories for my daughter but it is even greater if parents can make up stories or tell stories to their children.”
Axel is best known for his striking artwork for characters such as dragons, rats, cats, snails, fish, aliens and hairy beasts for books with writer Julia Donaldson and so far they have released 30 bestsellers together.
Twelve of them have been turned into BBC Christmas Day animation specials.
The latest is Tiddler, which will be voiced by Ted Lasso star Hannah Waddingham and comedian and actor Rob Brydon.
But Axel and Julia’s book The Gruffalo, which this year celebrated its 25th anniversary, is their most famous. Asked how he felt about the story’s huge success, he admitted: “I feel very ambivalent about it. I will be forever linked to it.
“There is no escape from being one of The Gruffalo creators.
“On the one hand it is great but on the other hand it’s a bit oppressive as well if that is not too big a word. It is forever associated by everybody and there are so many parents and grandparents who know the book, so it is weird to be famous.” However Axel is confident The Gruffalo will stand the test of time and still be read by children in 100 years if humans survive.
He added: “If the world still exists in 100 years’ time and if books still exist in 100 years’ time, The Gruffalo might be there.
“I am impressed how the book feels quite timeless – the drawing and the text. It doesn’t feel like it was done 25 years ago. It was a long time ago.
“I don’t know if it is because I carry on with the same style but when you look at picture books from the 1950s and 1960s you feel that it is a different world. Yet The Gruffalo hasn’t got that.”
● Tiddler airs at 2.35pm on BBC One on Christmas Day.