AI massively improved translation productivity

This article discusses a significant impact on translator jobs (the International Monetary Fund cutting 75 percent of translators, a guy losing 70 percent of his income...).
https://edition.cnn.com/2026/01/23/tech/translation-language-jobs-ai-automation-intl

Can translation be the first sector to be automated by AI? Does anybody have examples where AI fails with translation? The article mentions legal texts, but I heard it does a very good job there.