My thoughts:
1) If you don't try, you'll never know. If trying isn't going to financially ruin you, then there's no reason not to try.
2) There seems to be an insatiable demand for actual quality children's content. I don't think you can go wrong going after that market.
3) AI throws a wrinkle into things, but the things that I've seen done with AI all seem to have a very similar look. Either they have that hyper-realistic look (think of those alternate imaginings of movies set in different time periods that you see on YouTube, like a 1950s Star Wars on Cinemascope, that kind of thing) or they have a more cartoon-like Pixar sort of look. But I don't think you'll ever see anything *truly* unique out of AI, since it can only produce things that look like what it has been trained on. My gut instinct is that outside of certain narrow use-cases, it won't be the panacea everyone is making it out to be. That said, I could easily be wrong, the type of stuff that AI was producing just 3 years ago was fairly laughable, compared to what you're seeing now. But I still don't think it will be able to come up with anything truly unique.
4) As far as publishing your work, YouTube might be the best way to go as there is a pretty big kid's market there. However, in order to get promoted by the algorithm you'll need to produce shorts on a weekly basis, which is a pretty tall order.