AM radio to Bluetooth.. or other ideas.

Maybe take a good look at the Bluetooth amps like already mentioned.
I have one that receives Bluetooth, usb, memory card and fm stereo.
It’s small enough to put in a glove box or console.
It cost about 30 bucks and comes with a remote.

This is the one I have.

View attachment 1716196634
This is what I did. Works great. You do need to add modern speakers though. Those little 8 amp speakers that the car came with can't handle this.