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If it was a '99-'00 S80, there'd be a list of possible known problems because .....well, I won't go there (bad words).
On your car with that radio, those don't have common AM radio problems SO it's going to be either an antenna related problem (unlikely being that FM works) OR assuming that all connections are good, you have internal radio problems.
Now.....IF they (or you) replace the radio and it's no better, you should be able to just return it. At least we dealer guys can do that w/o a problem. If you do it yourself (all too easy), just ask the parts guy before you buy IF you can return the unit IF that's not your problem. They might tell you "no returns on electrical parts once plugged in". That depends on the person and/or his manager as they have their rules and you'll need to ask them.
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