The Italian thinks that his deputy at the Santiago Bernabeu will make a fine coach in his own right someday and hopes to work on the France international striker's confidence
The Frenchman has scored 12 goals in 14 games in 2014 - a stark contrast to his intermittent success in past seasons when he had competition from Gonzalo Higuain, who left the club for Napoli in the summer.
Ancelotti credits Benzema's compatriot, Zidane - who was brought on as part of the Italian's coaching staff - with unlocking the forward's confidence.
"I think Zidane's done fantastic work, especially with Karim," the ex-Paris Saint-Germain boss told RMC Sport. "He's communicated a lot with the players and implemented a specific job with all attackers. His work is very important.
"I am very pleased with Zidane. He has a lot of enthusiasm and a lot of knowledge. He understands what is happening on the pitch during a match. I asked him several times if he wanted to play but he told me no! He can still play without problem!
"This is important when you get into a club, to be able to rely on someone who knows the club very well, as I had done with Claude Makelele at PSG."
Ancelotti suggested that the former Juventus midfielder will make a fine head coach in his own right eventually but thinks that shadowing him at the Santiago Bernabeu is a great way to build up some experience.
"I think Zidane will coach a club without any problem, or even a national team," he continued, "but it is better to start with a club.
"He has everything to make it happen. He still lacks a bit of experience but this is normal. Otherwise, he has all of the knowledge, personality and charisma needed."
The Madrid boss also expressed his hope that Benzema will come out of his shell more in future while lauding the attacking trident in which he is joined by Gareth Bale and Cristiano Ronaldo, which has been affectionately nicknamed 'BBC' by some fans.
"For us, Karim is not important only because he scores goals," Ancelotti continued, "he is important because he helps the team in possession.
"I love the positional ability and the characteristics of the player. He is not just a scorer, he is a complete player. He is not very different from Zlatan Ibrahimovic, who loves to help at the back and is also a team player.
"The combination of Bale-Ronaldo-Benzema is complementary. The fact that Benzema doesn't have competition from Higuain this year may have helped.
"I think he can still improve, especially his character, to show more personality. He is a very quiet and shy boy. This is where he can improve."