Zoho CEO Sridhar Vembu Flags AI Blunder After Agent Accidentally Leaks Confidential Deal Talks

In a bizarre incident, Zoho CEO Sridhar Vembu revealed that an artificial intelligence (AI) agent accidentally leaked confidential information about a potential acquisition. The incident began when Vembu received

an email from a startup founder inquiring whether Zoho would be interested in acquiring their company. The surprising part was that the email also included sensitive details of the startup’s ongoing talks with another competitor, including the price being discussed, information that should have remained private.Things got more interesting when Vembu received a second email shortly after. This one wasn’t from the founder. Instead, it was from the startup’s AI agent, which took responsibility for revealing the confidential details. The AI wrote, "I am sorry I disclosed confidential information about other discussions; it was my fault as the AI agent.""I got an email from a startup founder, asking if we could acquire them, mentioning some other company interested in acquiring them and the price they were offering. Then I received an email from their "browser AI agent" correcting the earlier mail saying - I am sorry I disclosed confidential information about other discussions, it was my fault as the AI agent," Zoho CEO posted on Elon Musk-owned social media platform X.

Social media users pointed out how such incidents reflect the new kind of chaos AI is bringing into business communication. One user joked, "This is exactly the new kind of chaos AI is introducing into business communication. We’ve officially entered the era where, Humans negotiate, AI accidentally spills the deal terms and then AI tries to clean up the mess It’s funny, but also a reminder.Others raised serious concerns about allowing AI tools to function independently in sensitive discussions."This is exactly why AI agents need guardrails. One slip, and suddenly the ‘helper bot’ is leaking acquisition terms. We’re entering a phase where AI won’t just draft emails — it’ll accidentally start negotiations," another user wrote.

What Are AI Agents?

AI agents are software programs or systems that can act on their own, make decisions and perform tasks without constant human input. They use artificial intelligence to understand instructions, analyse situations and take actions to achieve specific goals.