I would not take young kids to the AC. Many of the acts are risque and not kid appropriate. It's generally not a good idea to have kids at PI at night anyway. This place is supposed to be geared to adults, and some nights people get downright rowdy. I know that when I was at the AC last Feb, someone brought in a couple of young kids one night and you could just tell people felt uncomfortable because the acts including the improv went on as per normal, innuendo and all, including one of the maids have a make tourist take a photo of her backside. Not to mention guests cursing and drinking (you are in a bar, after all).
This place is very fun for adults. It is NOT for children. If you would not take your children to a bar at home, please do not take them to them at WDW.