m1 air unless you plan on getting the 512gb version of the m2, both have similar capabilities for the money you are paying. plus the base m2 has an ssd that will feel slower compared to the upgraded m2 air.

m1 should be lightyears away from your intel mac, but a really significant jump that you will definitely feel would be an m-pro or m-max chip (m1, 2, or 3).