You should state what microphone you are using.
I've been using an IC-756 Pro II on AM with great results.
However, I haven't used the front panel microphone input since I've owned the rig.
I always use the Modulator input, Pin 4 and Pin 2(ground) on Accessory Socket 1 which connects directly to the modulator. This bypasses all the audio "tailoring" circuitry between the front panel microphone connector and the modulator.
Microphone into a equalizer like the W2IHY box, or something similar, into pin 4 and 2 will add life to your audio. It will also work well on SSB.
I also never use the negative voltage mod into the ALC pin. FYI: this mod was originally introduced by Kenwood back in the 80's to lower the RF output on SSB for their hybrid transceivers starting with the TS-520. Back then, there was a movement for QRP SSB.
If you want to read the advantage of the Icom design which is also used in some Yaesu rigs go here
https://www.qsl.net/wa5bxo/asyam/aam3.htmland scroll all the way down to the article by Bacon, WA3WDR
Technically, with this type of modulation and a linear, you can run key down a 1500 watt carrier on AM and still be considered legal. Positive peaks might have been cool back in the "good old days" with vacuum tube rigs, but its really not needed with today's solid state rigs.