If the transmission fluid is low, it cannot properly lubricate the transmission's gears, shafts, and other internal components. This can cause them to overheat, wear out prematurely, and eventually fail. In addition, low transmission fluid can also cause the transmission to slip or shift erratically.
It is important to check the transmission fluid level regularly and add fluid as needed. If the transmission fluid is low, it is a good idea to take the car to a qualified mechanic to have it inspected.