Fractional Head of AI for small businesses
A fractional Head of AI is a part-time AI consultant who owns how your business uses AI and checks the risks. Ours is £1,950 a month for 2 days, or £1,050 for 1 day, excluding VAT, with a 3-month minimum. You get an AI use policy, a Copilot readiness check, a measured pilot and staff training.
from £1,050a month for 1 day, excluding VAT. £1,950 a month for 2 days. 3-month minimum.
About three minutes. We reply within 2 business hours, Monday to Friday.
- A fixed monthly price, excluding VAT. Microsoft licences, software builds and developer time are not included.
- A written proposal before work starts, and one named point of contact
- Read-only Global Reader access for the tenant check, removed afterwards. Your tenant, data and domain stay yours.
What it costs
Two retainers, priced by days a month, with extra days at our standard day rate. The Copilot licence is Microsoft's, shown for context: it is not in our price and you may not need it.
| Service | Price, excluding VAT |
|---|---|
| Fractional Head of AI, 1 day a month | £1,050a month, 3-month minimum |
| Fractional Head of AI, 2 days a month | £1,950a month, 3-month minimum |
| Extra days | £950a day |
| Microsoft 365 Copilot Business add-onnot included; only if the readiness check and pilot say it is worth it | £16.10per user per month, Microsoft's UK list price, annual subscription paid yearly |
3-month minimum, then 30 days' notice. No software builds or developer time. Microsoft licences are not included.
Copilot licence prices are Microsoft's UK list prices, checked 22 October 2026. Our Copilot guide compares the add-on with the bundles and covers Microsoft's current offer.
About three minutes. We reply within 2 business hours, Monday to Friday.
What you get each month
Seven deliverables, from our price list. The policy, inventory, training and contract checks cover any AI tool your staff use. The readiness check applies to Microsoft 365.
- A written AI use policy: which tools staff may use, what data must never go into them and who approves new ones
- A list of the AI tools already in use, and the data each one can reach
- A Copilot readiness check of your Microsoft 365 tenant with read-only access: sharing, permissions and who can open what
- Use cases ranked by value and risk, and one pilot measured before and after with the people who do the work
- Staff training sessions on using AI safely and well, in line with your policy
- AI tools and contracts checked before you sign: where your data goes, who can see it and how to leave
- A plain-English report to the owners or board each quarter: what's in use, what it costs, the risks and the pilot results
The order of work in the first 3 months
Your written proposal sets the dates. On 1 day a month the same work runs at a slower pace.
The AI tools already in use. And the data each can reach, including personal accounts used for work.
The AI use policy. Agreed with you, and written so staff can follow it.
The Copilot readiness check. With read-only access to your Microsoft 365 tenant.
Use cases ranked. By value and risk, with the people who do the work.
One pilot. Measured before and after, with the staff involved. You decide whether to keep, stop or extend it.
Staff training. Matched to the policy.
The first quarterly report. To the owners or board: what's in use, what it costs, the risks and the pilot results.
Copilot readiness: what we check first
Microsoft says Copilot only surfaces data a user already has permission to view, so over-shared files are the main risk. It also says prompts, responses and data read through Microsoft Graph aren't used to train its foundation models.
Copilot Chat comes with eligible Microsoft 365 licences, without a Copilot licence. Start there before buying the add-on.
- Sharing settings and wide groupsWho can open what, and which groups quietly give everyone access.
- Sensitive folders and labelsPayroll, HR and client files, and whether labels protect them.
- Guests, shared channels and old sitesExternal people and forgotten sites that Copilot would search.
- Third-party models and billing limitsWhich AI models are switched on for your tenant, and the limits on usage-based billing.
Microsoft's own deployment guidance has three pillars: remediate oversharing, set up guardrails and meet regulations. Our check starts with oversharing. The full checklist is in our Copilot guide.
The access we need is Microsoft's Global Reader role: read-only, and removed when the work is done.
An AI use policy your staff can follow
Short enough to read, specific enough to act on. Reviewed with you each quarter.
- Approved toolsWhich AI tools staff may use, and on which account.
- Data that must never go inClient, personal and commercially sensitive data, named plainly.
- Checking AI outputMicrosoft notes that generative AI responses aren't guaranteed to be 100% factual, so a person checks before anything is sent.
- Who approves new toolsOne route for requests, so tools don't arrive by credit card.
- How to report a mistakeWithout blame, so problems surface early.
The ICO says AI data protection issues can't be delegated to data scientists or engineering teams, and that senior management are accountable too. The ICO's AI guidance is under review because of the Data (Use and Access) Act.
The NCSC's AI and cyber security guidance says managers don't need to be technical experts. They should know enough about AI risks to discuss them with key staff. The policy is written for that conversation. It is not legal advice.
Who it's for, and who it isn't
Businesses of 10 to 100 people whose staff use AI tools, or want to, with no policy, no plan and nobody in charge. You get set days each month from someone who owns how the business uses AI: what's allowed, what's worth doing and what it costs.
The government consulted on an AI management tool from November 2024 to January 2025. Respondents said that SMEs and start-ups "often lack the time, funding, and personnel to dedicate to AI governance", as the DSIT response records. That is the gap this role fills.
It isn't software or AI product builds, developer time, data science, or a one-off report. For a one-off check of your Microsoft 365, the £395 security audit is the smaller step.
We work alongside your existing IT provider. The readiness check needs read-only access only.
Head of AI or fractional CTO?
The fractional CTO owns the IT plan, budget and suppliers. The Head of AI owns how the business uses AI. Both cost the same: £1,950 a month for 2 days or £1,050 for 1 day, excluding VAT.
Need both? Choose one on the form and say so in the problem box.
How it starts
Three steps, the same for every consultancy service.
A short call. You tell us what you're trying to solve. We ask enough to scope the work, and say plainly if it isn't something we do.
A written proposal. What we'll do, what you'll get and when, with a fixed price or a day rate. Nothing starts until you agree it in writing.
Delivery with a named point of contact. One person owns the work from start to finish, keeps you informed in plain English and hands over documentation at the end.
Full details are also on the consultancy page.
Common questions
How much does a fractional Head of AI cost?
Ours is £1,950 a month for 2 days, or £1,050 a month for 1 day, excluding VAT. Extra days are £950. There is a 3-month minimum, then 30 days' notice. Microsoft licences, software builds and developer time are not included.
What does a fractional Head of AI do?
They own how your business uses AI, for a set number of days a month. That means a written AI use policy and a list of the AI tools in use, with the data each can reach. It also means use cases ranked by value and risk, a measured pilot, staff training, contract checks and a quarterly report.
Does my business need an AI policy?
If staff use AI tools for work, a short written policy helps. It says which tools are allowed, what data must never go into them and who approves new ones. The ICO says AI data protection issues can't be delegated to data scientists or engineering teams, and that senior management are accountable too. That ICO guidance is under review because of the Data (Use and Access) Act.
Is Microsoft 365 Copilot safe for our business data?
Microsoft says prompts, responses and the data Copilot reads through Microsoft Graph aren't used to train its foundation models. The bigger risk is your own sharing. Copilot shows people anything they already have permission to open, so an over-shared folder becomes easy to find. Our readiness check looks for that first.
Does UK GDPR apply when staff use AI tools?
Yes, whenever personal data goes into them. The ICO says that in the vast majority of cases, using AI involves processing likely to result in a high risk. That triggers the legal requirement for a data protection impact assessment (DPIA), judged case by case. The ICO's AI guidance is under review because of the Data (Use and Access) Act.
Do you build AI tools or agents?
No. This service is advice, governance and getting value from tools you buy, such as Microsoft 365 Copilot. We don't build software or supply developer time. If a pilot shows you need a build, we can help you write the brief and check the quotes as part of your days.
Can we start with something smaller?
Yes. Our Microsoft 365 security audit is £395 fixed for up to 25 users, excluding VAT. It checks external sharing and admin roles, which matter before you switch on Copilot. The fee is credited in full if you move to Managed or Secure within 30 days.
Guides that go deeper
Plain-English guides on the rules, the costs and the settings behind this service.
Microsoft 365 Copilot Business UK Cost: Is It Worth It?
What Microsoft 365 Copilot Business costs UK firms: worked totals for 5 and 20 users, add-on versus Copilot plans, who should wait and a readiness list.
Read the guide
Microsoft 365 Security Checklist for Small Businesses (2026)
The 10 Microsoft 365 settings that matter most for a small business: MFA, admin roles, sharing, email security and backup, with where to check each.
Read the guide
Microsoft 365 Business Basic, Standard or Premium: Which Fits?
Basic suits email and web apps, Standard adds desktop Office, and Premium adds device and sign-in security. See UK prices and which plan fits your team.
Read the guideWant someone to own AI in your business?
Tell us which AI tools your staff use today and what you'd like to happen next. We reply within 2 business hours, then a short call and a written proposal before anything starts.
About three minutes. We reply within 2 business hours, Monday to Friday. Or email support@cloud365.io.