Explainer
Fractional Chief AI Officer (CAIO)
A fractional Chief AI Officer, or fractional CAIO, is a senior person who runs AI for your company part-time. They decide where AI is worth using, get it built, and train your team to run it. You pay a monthly fee instead of a full-time salary. Some people call the same role a fractional AI officer or a fractional Head of AI.
What they do
The job has two halves. The first half is to decide which processes to hand to AI, and which to leave alone. The second half is to build the agents and automations, run them, and train your team until the work doesn't depend on an outsider.
One person answers for both halves. That's the difference from buying a tool or hiring an agency for one project.
When you need one
01
You bought AI tools, but few people use them.
02
You have ideas for AI, but nobody has time to own them.
03
A board, investor or client asks what your AI plan is.
04
You want a full-time AI lead one day, but not yet.
Fractional, full-time, agency or consultant?
| Question | Fractional CAIO | Full-time hire | Agency | Strategy consultant |
|---|---|---|---|---|
| Owns the result | Yes | Yes | For their project | No |
| Builds | Yes | Sometimes | Yes | No |
| Trains your team | Yes | Yes | Rarely | Sometimes |
| Cost | Monthly retainer | About $270K base salary (estimate), plus benefits | Per project | Per project |
| Commitment | 3-month minimum, then monthly | Salary and hiring | Per project | Per project |
Where the Embedded AI Partner fits
Embedded AI Partner is my name for the fractional CAIO role. I work inside your team every week, build the systems myself, and train one person on your team to run them. That person is your AI champion.
I work with owner-led companies that have 10 to 200 staff. They need someone to own AI, but not a full-time executive yet.
What it costs
Published fractional AI retainers in the US start at about $3,500 a month and go past $10,000. The price depends on time and seniority. Salary guides estimate a full-time Head of AI at about $270,000 a year in base pay.
My retainer as an Embedded AI Partner starts at $5K/month, after a 2-week Assessment for $2,500. You pay software and AI usage on top, in your own accounts.
Where to hire a fractional Head of AI
You can hire a fractional Head of AI, or fractional CAIO, through a talent marketplace, a recruiter, an agency or dev shop, or an embedded partner who works inside your team. Marketplaces and recruiters find you a person. Agencies usually work per project. An embedded partner plans the work, builds it and trains your team, for a monthly fee.
| Question | Embedded partner | Talent marketplace | Recruiter | Agency or dev shop |
|---|---|---|---|---|
| Cost model | Monthly retainer | The person's hourly or monthly rate | A fee for the search, plus the person's pay | Per project |
| Who builds | The partner, then your team | The person you pick, if they build | The person you hire, if they build | The agency's team |
| Commitment | Monthly, after a minimum term | Set with each person | Set with each person, after the search | Usually per project |
| Fits you if | You want one person to plan, build and train your team | You know the profile you want and can vet people yourself | You want to hire a person and have time for a search | You have one clear project and someone to run it after |
How to choose one
Ask every candidate these questions. Ask me too.
- What have you built that runs today?
- How will my team run this without you?
- Who owns the accounts and the code?
- What are the prices, and how does it end?
Questions
What does a fractional Chief AI Officer do?
A fractional Chief AI Officer decides where AI is worth using in your company, gets the agents and automations built, and trains your team to run them. One person owns the result, part-time, for a monthly fee.
How much does a fractional CAIO cost?
Fractional CAIOs charge a monthly retainer, and the price depends on time and seniority. My retainer starts at $5K/month, after a 2-week Assessment for $2,500. The Assessment fee is credited to your first month if the retainer starts within 30 days. You pay software and AI usage on top, in your own accounts.
Should we hire a fractional or a full-time Chief AI Officer?
Hire full-time when AI work fills five days a week. Most companies with 10 to 200 staff aren't there yet, so a fractional CAIO gives them a senior owner for a monthly fee. If you hire full-time later, I help write the role, interview candidates and hand over, at no extra fee.
Who is a fractional CAIO for?
Owner-led companies with 10 to 200 staff that have repeated work worth speeding up and nobody with time to own AI. You don't need to be a tech company. Crane Stationery isn't one. You need one person on the team who wants to learn.
Where can I hire a fractional Head of AI?
You can hire one through a talent marketplace, a recruiter, an agency or dev shop, or an embedded partner. Marketplaces and recruiters help you find a person. Agencies usually work per project. An embedded partner plans the work, builds it and trains your team, for a monthly fee. My Embedded AI Partner retainer starts at $5K/month.
Should I use a marketplace or an embedded partner?
Use a marketplace if you know the profile you want and have time to vet and manage the person yourself. Use an embedded partner if you want one person who owns the plan, builds the systems and trains your team to run them. With me, that starts with a 2-week Assessment for $2,500.
Is a fractional CAIO the same as a fractional Head of AI?
Yes. Fractional Chief AI Officer, fractional CAIO, fractional AI officer and fractional Head of AI are names for the same part-time role. I call my version Embedded AI Partner, because I work inside your team every week. I don't advise from the outside.
How much time does a fractional CAIO spend with the team?
It depends on the provider. With me you get a set rhythm, not a bank of hours. A weekly session with your team, a monthly check-in with leadership, building in between, and replies within one business day.
How long do we commit for?
My retainer has a 3-month minimum, because building and training take a few months to pay off. After three months it's month to month, with 30 days' notice. When it ends, you keep everything that was built.