The AK can benefit a lot from improvements. Just like very few people run stock Colt SP1s you should not limit yourself to using stock AKs.
There is a lot of truth in the statement many shooters would be better off with spending the money on ammo, but this is true of most shooters and most guns.

The main drawback of the AK platform are the ergonomics. It simply isn't as slick as an AR but there are plenty of additions which can improve the AK, just like they improve the AR.

The mounting options for the AK are still in the developmental stage due to the late acceptance of the AK. Mostly the AK was seen as a budget option and hetting someone to add a $500 sight to $300 gun is a hard sell. But just like the carry handle mounted optics or the ARMS style mounts on older ARs, you have to start somewhere. If "Neyt, rifle fine comrade" was true we'd still all rock SP1s.

The AKM style slant muzzle brake is surprisingly effective, the AK74 style brake is better, but longer. There are a wide variety of Western muzzle devices which are as good or better.

Red dot sights are simply easier than irons. They also allow you to look at and concentrate on the target. With older eyes or eyes with medical conditions they assist woth aiming. They also negate one much maligned aspect of the AK, the relatively short sight radius. There are various mounting options, some better than others, some the equivalent of ARMS mounts, some requiring part replacements like converting a SP1 to a flat top does. Here caution is required. The wrong mount/sight selection can ruin the fit of the original stock by placing the sights way too high. One minor up side is red dot sights are mostly parallax free so it is mitigated a bit.

For mounting an optic you have two main methods, using the AK rail or part replacements. The Type 56s I have played with did not have an AK sight rail so who knows if this is an option for you. On the sight rail ypu can get one piece mounts like the Russian PKAS or Kobra sight or the semi one piece part like Midwest Industries 30mm red dot side mount which is side mount and ring combined. Then you get various generic 1913 rail sections which mount on the AK side rail. These can be expensive like MI or cheaper like UTG/NC Star. They will allow you to mount any 1913 rail compatible sight but you run the risk of them sitting too high.
Then you get the part replacement mounts. These csn replace thr dust cover, rear sight, gas tube cover, gas tube or even the rear sight assembly in some cases. Each of these has advantages and disadvantages. Beware of the gas tube covering and dust cover replacements, as well as some rear sight replacements. Some will sit your red dot too high. The Midwest Industries handguard replacement with optic specific gas tube cover, Ultimak gas tube, Midwest Industries optic specific rear sight replacement and Strike Industries replacement rear sight all offer good sight over bore hights to use with original stocks. Some mounting systems like the MI and Strike rear sight and some over tbr dust cover mounts make stripping the gun much harder because you either need tools or have a much reduced work space.

Stocks are another thing which can be replaced. There are various methods available, including the locally made 3% Engineering AR stock converter. With these you gain an adjustable length of pull as well as the option for easy cheek weld fitment. There are also new stocks like the Magpul offerings which don't, as i understand it, require an adapter but which will require minor fitting.

There are more and more rail systems for the AK. Just remember like the Quad Rails on the AR they will add weight to an already heavy platform. The trend with ARs is to slim down and remove the quad rail in favour of slick handguards and rail segments to mount your required devices, or direct mounts like Mlok and Keymod . There are various same spec hand guard replacements like the ATI handguards with rail sections for lights and such, there are similar spec handguards like the MI system which offers rails and optic mounts and there are extended handguards like the Magpul Zhukov, Midwest Industries extended rail and the Keymod system DSG was advertising. All of these methods offer more real estate for things like lights, grips and hands. They also offer an option of the more extended shooting stance some people prefer, again at the expense of weight.

Edit, - safety and pistol grips.

One aspect of the AK which isn't as ergonomic as the AR is the way the selector/safety works. Something like a Krebbs extended safety means you can put it on and off safe with the shooting hand, just like an AR can, reducing manipulations and crossing over hands.

The right side charging handle isn't as easy to "correct" without fairly hefty modifications, some of which may reduce reliability, so you will just need to get better at reaching over/under.

The original AK pistol grip is fairly small and there are many replacement parts you can use if you have larger hands.

There isn't any reason to keep an AK or even a Type 56 in the 1950s. You need to be rather mpre selective with your parts than on an AR, but mostly because the parts are still being developed. The availability of these parts in SA, and their resultant costs is another thing that needs looking at. It is easy to drop 10K+ on setting up your rifle which may still not be as "good" as a 15K AR.

You can't buy skill and tricking out your AK will by no means mean you will automatically beat people without the mods but they do make life easier.

KBK