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Her main issue was that most of her work came from a single agency. And that's a common pitfall for freelance writers. Once that source dries up, you are left with too little to survive. But that has happened before AI as well.
It wasn't that all her clients were happy with AI but the agency got fewer clients and instead of sharing the remaining clients with all their writers evenly they decided to cut a few writers completely.
The true shocking part is, that it is practically impossible to find new employment. She was looking for several months before having to take something else to survive.
But even if you are well diversified in your clients and are constantly looking for new clients, the number of available jobs has dropped and so did the price. Meaning many writers who once got by comfortably are now struggling or had to switch career.