He didn't say this about AI generally as far as I know. He was shown some kid's art project using an earlier AI and it just looked extremely uncanny in the way

He didn't say this about AI generally as far as I know. He was shown some kid's art project using an earlier AI and it just looked extremely uncanny in the way that is typical of bad generative art. So that's definitely a misquote, though I wouldn't be surprised if Miyazaki dislikes AI.