Introduction: There is increasing interest in Artificial Intelligence (AI) and its application to medicine. Perceptions of AI are less well-known, notably amongst children and young people. This exploratory patient and public engagement (PPEI) workshop investigates attitudes towards AI and its future applications in medicine and healthcare from the perspective of children and young people with lived experiences at a specialised paediatric hospital using practical design scenarios. Method: Members of Great Ormond Street Hospital for Children's (GOSH), Young Persons Advisory Group for research (YPAG) contributed to a one-hour AI workshop to ascertain potential opportunities, apprehensions, and priorities. Quantitative polling using a series of nine AI-related design scenarios were scored voluntarily and anonymously on a 10-point Likert scale and mechanisms for effectively engaging with patients and families on the potential for AI were discussed. Results: 21 GOSH YPAG members (aged 10-21 years) participated. Human-centeredness, governance and trust emerged as major themes, with empathy and safety considered as important when introducing AI to healthcare. Of the scenarios presented, sensor technology to reduce overcrowding (M 7.4, SD 2.7), cleaning robots (M 7.9, SD 2.4), virtual reality visits (M 6.5, SD 2.8) and 3D printed organs (M 6.2, SD 3.5) were the most acceptable, whilst AI-powered nurses the least acceptable (M 2.4, SD 2.3). Educational workshops with practical examples using AI to help, but not replace, humans were suggested to address issues, build trust and effectively communicate about AI. Conclusion: Whilst policy guidelines acknowledge the need to include children and young people to develop AI, this ignores infrastructure needs to encourage digital cooperation. For AI in medicine and healthcare this requires an enabling environment for human-centred AI involving children and young people with lived experiences of healthcare. This PPEI workshop is an important mechanism to shape future research questions. Future research should focus on building consensus on enablers for an intelligent healthcare system designed for the next generation, which fundamentally, allows co-creation.