Zoho Corp founder Sridhar Vembu on Friday recounted an unusual incident involving an autonomous AI agent that mistakenly disclosed confidential business information during a potential acquisition outreach.
Vembu shared on X that the episode began when he received a cold email from a startup founder pitching an acquisition opportunity. 
The message, however, included details typically kept confidential in M&amp;A negotiations, including the identity of a competing bidder and the exact price they had put forward.
According to Vembu, the founder later discovered that the sensitive information had been inserted by the company&rsquo;s AI agent, which mistakenly assumed it should provide complete context. 
The agent subsequently issued an apology, saying, &ldquo;It was my fault.&rdquo;
The incident highlights the unpredictable ways in which autonomous AI systems are increasingly intersecting with high-stakes corporate communication, occasionally breaching norms around discretion and confidentiality.

AI agent apologises after leaking deal details

Startup’s AI tool discloses confidential bid details in email to Zoho’s Sridhar Vembu

AI Agent Leaks Deal Details, Apologises

Startup’s AI tool discloses confidential bid details in email to Zoho’s Sridhar Vembu

December 2, 2025 | 17:43 IST