'It was my fault': Sridhar Vembu says startup AI leaked private talks, then confessed
Vembu did not name the founder or company involved, but the episode has reignited debate over how far AI should be trusted to handle executive communications.
- Nov 28, 2025,
- Updated Nov 28, 2025 7:56 AM IST
Zoho CEO Sridhar Vembu revealed a bizarre email exchange where a startup’s AI agent sent him a follow-up apology after leaking confidential acquisition details, without the founder’s direct input.
In a LinkedIn post, Vembu said he first received an email from a startup founder proposing an acquisition and disclosing the price another company had offered. The next message came not from the founder, but from their “browser AI agent,” apologizing for the leak.
“I am sorry I disclosed confidential information about other discussions, it was my fault as the AI agent,” the email reportedly read.
The incident drew swift reaction online, with users warning about the growing risks of using AI to automate sensitive business communication.
“When your AI apologises before you do, it’s not efficiency — it’s a governance red flag,” one user commented.
“This is exactly the scary part of using AI to handle emails,” another added. “AI can help draft, but a human should always read and send the final mail.”
Vembu did not name the founder or company involved, but the episode has reignited debate over how far AI should be trusted to handle executive communications. Critics argue that allowing AI agents to take the wheel in investor or M&A conversations not only risks confidential leaks but also signals poor judgment and a lack of oversight.
Zoho CEO Sridhar Vembu revealed a bizarre email exchange where a startup’s AI agent sent him a follow-up apology after leaking confidential acquisition details, without the founder’s direct input.
In a LinkedIn post, Vembu said he first received an email from a startup founder proposing an acquisition and disclosing the price another company had offered. The next message came not from the founder, but from their “browser AI agent,” apologizing for the leak.
“I am sorry I disclosed confidential information about other discussions, it was my fault as the AI agent,” the email reportedly read.
The incident drew swift reaction online, with users warning about the growing risks of using AI to automate sensitive business communication.
“When your AI apologises before you do, it’s not efficiency — it’s a governance red flag,” one user commented.
“This is exactly the scary part of using AI to handle emails,” another added. “AI can help draft, but a human should always read and send the final mail.”
Vembu did not name the founder or company involved, but the episode has reignited debate over how far AI should be trusted to handle executive communications. Critics argue that allowing AI agents to take the wheel in investor or M&A conversations not only risks confidential leaks but also signals poor judgment and a lack of oversight.