Chief AI Officer vs fractional: what it costs
Salary guides estimate a full-time Head of AI in the US at about $270,000 a year in base pay, before benefits and the time it takes to hire. A fractional Chief AI Officer works part-time for a monthly retainer. Mine starts at $5K a month, which is $60,000 over a year.
Dani Ifrim, Embedded AI Partner
Updated 31 October 2026
In short
- A full-time AI lead costs about $270,000 a year in base pay. Benefits and the hire come on top.
- My retainer starts at $5K a month. Over 12 months that is $60,000.
- The retainer has a 3-month minimum, then 30 days' notice.
- With the retainer, you pay software and AI usage on top, in your own accounts.
- Hire full-time when AI work fills five days a week.
I sell the fractional option, so read the numbers with that in mind. Every price here is on my site.
The first year, month by month
Base salary builds up at about $22,500 a month. The retainer builds up at $5,000 a month at its starting price. After 12 months the gap is $210,000.
Side by side
- How you pay
- Full-time hireSalary
- Fractional CAIOMonthly retainer
- Base cost for a year
- Full-time hireAbout $270K (estimate)
- Fractional CAIOFrom $60K ($5K a month)
- Also pay
- Full-time hireBenefits and the time to hire
- Fractional CAIOSoftware and AI usage, in your own accounts
- Builds the systems
- Full-time hireSometimes
- Fractional CAIOYes
- Trains your team
- Full-time hireYes
- Fractional CAIOYes
- Commitment
- Full-time hireSalary and hiring
- Fractional CAIO3-month minimum, then 30 days' notice
| Compare | Full-time hire | Fractional CAIO |
|---|---|---|
| How you pay | Salary | Monthly retainer |
| Base cost for a year | About $270K (estimate) | From $60K ($5K a month) |
| Also pay | Benefits and the time to hire | Software and AI usage, in your own accounts |
| Builds the systems | Sometimes | Yes |
| Trains your team | Yes | Yes |
| Commitment | Salary and hiring | 3-month minimum, then 30 days' notice |
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.
What the retainer pays for
You buy a set rhythm, not a bank of hours.
- 01
A weekly working session with your team
We work through one of your real processes. One person on your team becomes your AI champion and learns to run what we build.
- 02
A monthly check-in with leadership
What we built, what it does, and what comes next.
- 03
New builds every month
AI agents, automations and internal tools, in your own accounts. Always the next item on the ranked plan.
- 04
Replies within one business day
One build from this kind of work: for Robert Buhler, now CEO of Crane Stationery, I built a system that watches his LinkedIn network for promotions, job changes and company moves. It researches each one and sends a personal printed note through his own ERP. It brought 40% more lifetime value per customer.
What the first step costs
Work with me starts with a 2-week Assessment for $2,500. If you are not happy, ask within 7 days of delivery and I refund the full fee.
If the retainer starts within 30 days, the $2,500 counts toward your first month.
- Assessment
- $2,500
- Credited in full to your first month if the retainer starts within 30 days. Money back if you're not happy.
- Retainer
- From $5K/month
- 3-month minimum, then month to month with 30 days' notice.
- Maintenance
- From $1,500/month
- Move back to the retainer any time you want new builds.
From the price list on How it works.
When a full-time hire makes sense
Hire full-time when AI work fills five days a week. Most companies with 10 to 200 staff are not there yet.
If you hire full-time later, I help write the role, interview candidates and hand over, at no extra fee.
Read next
Questions
How much does a Chief AI Officer earn?
Salary guides estimate a full-time Head of AI in the US at about $270,000 a year in base pay. Benefits, bonuses and the cost of the search come on top.
How much does a fractional CAIO cost?
Fractional CAIOs charge a monthly retainer, and the price depends on time and seniority. Published US retainers start at about $3,500 a month and go past $10,000. My retainer starts at $5K/month, after a 2-week Assessment for $2,500. 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.
What happens after the 3-month minimum?
The retainer runs month to month with 30 days' notice. Your AI champion can take over, you can move to maintenance from $1,500/month, or you can stop.
Who pays for the AI tools and software?
You do, directly, in your own accounts. You own everything and pay no markup. The Assessment estimates these costs before you commit.
See what fits your team
In a short call, we check if fractional or full-time fits your team.