For more than a century, State Farm built its business the old-fashioned way: local agents selling insurance to people they knew.

Now, that model is changing.

According to reporting by The Wall Street Journal, State Farm recently unveiled a sweeping plan that will require its 19,000 agents to operate under new contracts beginning in 2028. The changes include new sales targets, revised compensation plans, reduced benefits, and a greater emphasis on artificial intelligence.

The announcement came during a company convention in Las Vegas attended by thousands of agents. After concerts, entertainment, and appearances from company executives, State Farm CEO Jon Farney delivered the news that many agents weren't expecting: the company believes it must adapt to a rapidly changing insurance market.

A major reason is competition.

Earlier this year, Progressive surpassed State Farm as the nation's largest personal auto insurer, ending a run at the top that stretched back to World War II. Progressive has grown in part by embracing technology and direct-to-consumer sales. More than half of its personal auto policies are sold without agents involved.

State Farm, by contrast, has long relied on one of the largest field sales organizations in America.

The company believes customer expectations are changing. Consumers increasingly want faster quotes, digital experiences, and self-service options. Artificial intelligence is expected to play a larger role in making those experiences possible.

According to the Journal, State Farm is introducing AI-powered tools that can summarize customer information, identify potential coverage gaps, and recommend products. The company is also testing AI assistants that help customers report auto claims.

But the technology rollout is only part of what has agents concerned.

The new contracts reportedly eliminate certain benefits that many agents viewed as valuable parts of their long-term compensation. Deferred compensation programs are being discontinued, health-related benefits are being reduced, and commission structures are changing. Agents who fail to meet certain sales targets for multiple years could see lower commission rates.

Some agents told the Journal they expect meaningful reductions in income. Others worry they may need to cut staff, consolidate offices, or leave the business altogether.

The reaction has been intense.

Private Facebook groups, Reddit discussions, and agent forums quickly filled with criticism after details of the plan emerged. Some agents described feeling blindsided. Others viewed the changes as a betrayal of the company's long-standing commitment to its field force.

At the same time, not every agent opposes the move.

Some acknowledge that the insurance business is becoming more digital and that State Farm needs to evolve to remain competitive. Insurance carriers face growing pressure from rising claims costs, inflation, severe weather losses, and customer demands for lower prices and faster service.

In many ways, State Farm's situation reflects a broader trend happening across sales.

For decades, companies built competitive advantages through large sales organizations and personal relationships. Today, many are looking at AI as a way to lower costs, improve efficiency, and automate routine interactions.

The challenge is figuring out where technology ends and human selling begins.

State Farm insists that personal relationships will remain central to its future strategy. But as The Wall Street Journal's reporting makes clear, many agents are wondering whether the future they're being offered looks very different from the one they signed up for.

The debate unfolding inside State Farm may end up being a preview of conversations happening across sales organizations everywhere.