Category: C-Suite

What Is a Virtual CAIO?

1. Conceptual Role

A Chief AI Officer (CAIO) is a C-suite executive responsible for an organisation’s AI strategy, implementation, governance, ethics, security, reliability, risk management and exploitation. It’s a rapidly-growing role, especially since the LLM boom. The number of CAIOs globally has nearly tripled over the past five years.(Financial Times, Wikipedia)

2. Virtual / Fractional CAIO

A Virtual CAIO (sometimes abbreviated as vCAIO or expanded as Virtual Chief AI Officer) is essentially an outsourced or fractional version of that role. It’s aimed at companie, especially smaller ones,that need AI leadership and direction but can’t justify hiring someone full-time.

Here are a few examples:

  • virtualCAIO.com: Launched in 2023, it offers SMEs an external AI strategist to spot opportunities and manage threats, helping them implement AI across departments.(virtual CAIO)
  • Akili AI’s “Virtual Chief AI Officer”: A consultancy model where a virtual CAIO helps with strategy development, stakeholder engagement, opportunity assessment, typically for an initial 6–12 month period before a full-time exec might be hired.(Akili AI – Unlocking The Future of AI)
  • Custom Information Services (vCAIO Services): They offer services like AI strategy, tech evaluation, AI governance, training, and change management—all delivered flexibly and cost-effectively.(customis.com)
  • Intersys (UK): They embed the vCAIO function as part of broader virtual CTO services, catering to businesses looking for AI leadership without the full-time cost.(Intersys)
  • Adoni.ai: Offers on-demand vCAIO support—think strategic advisor, vendor evaluator, internal educator—all for as little as 10 hours per month.(Adoni)
  • vCISO analogies: Some providers deliver vCAIO services modeled on their successful virtual CISO programs—starting with deep-dive assessments and aligning AI adoption with standards like ISO/IEC 42001:2023.(VCISO Services)

Why Companies Use Virtual CAIOs

Summary Table

Role TypeWhat It Means
CAIOFull-time C-suite leader covering AI strategy, governance, ethics, and impact
Virtual CAIOOutsourced/fractional CAIO for SMEs or phased AI adoption
vCAIO ServicesFlexible packages—strategy, tech review, governance, training, change ops

The Rise of the Virtual CAIO

Why SMEs Can’t Afford to Ignore The Role of a vCAIO

In the coming years, few corporate roles will prove as decisive as the Chief Artificial Intelligence Officer (CAIO). For global enterprises, establishing an in-house Chief AI Officer to lead AI strategy is already a priority and the CAIO will become ubiquitous in the C-Suite. For small and medium-sized enterprises/businesses (SMEs / SMBs) however, the challenge is how to access the strategic thinking and artificial intelligence leadership they need given they don’t have the resources of multinationals? The answer lies in the rise of the virtual CAIO – an outsourced role whereby an experience consultant offers part-time or fractional AI guidance.

For AI to contribute strategically and operationally expertise is needed across data science, digital ethics, governance, and regulation and these are precisely the skills most SMEs lack. Recruiting a full-time AI executive is rarely feasible, both because of the scarcity of talent and the large salaries commanded by appropriately qualified and experienced talent.

This is where virtual CAIO services provide a lifeline. Much as virtual CFOs have become a familiar model, an outsourced CAIO gives SMEs access to high-level AI strategy and governance on a fractional basis. They can help identify where AI genuinely adds value, design frameworks for safe and compliant deployment, and build roadmaps that scale as the company grows. Crucially, they ensure that AI adoption for SMEs is pragmatic, cost-effective, and aligned with long-term goals.

Equally important is the interpretative role. A virtual CAIO for SMEs can translate fast-moving developments in AI technology into plain language, enabling non-technical boards to make informed decisions. They help avoid two equally damaging errors: chasing every shiny new AI tool, or retreating into inertia. At the same time, they safeguard against reputational damage and regulatory risk—an issue set to intensify as the UK, EU, and beyond implement stricter AI compliance frameworks.

Over the next three to five years, the difference between thriving SMEs and those left behind will not be whether they use AI, but how intelligently they integrate it. For many, outsourced AI expertise in the form of a virtual CAIO will be the most practical—and indeed essential—solution.