TERRAISE Inc. (Headquarters: Shibuya-ku, Tokyo; CEO: Ryosuke Funahashi) is providing "AI Advisor," a retainer service for management that allows companies to secure AI expertise as needed without hiring a full-time CAIO (Chief AI Officer). While major domestic companies are increasingly appointing CAIOs from 2025 to 2026, only 4% of Japanese companies overall have dedicated CAIOs, with 41% of AI initiatives being concurrently managed by CDOs (Chief Digital Officers). TERRAISE offers a new option for mid-sized and growing companies unable to commit to full-time hires: the "Fractional CAIO" model, which is gaining traction in the United States.
"We know we need to advance AI, but we don't have anyone internally to lead the charge."
Many executives are quietly grappling with this dilemma. They've issued directives. They've signed contracts for tools. Yet, the organization doesn't move. They don't know where to start or who to assign the task to. Hiring a dedicated executive with AI expertise is challenging, as such individuals are scarce in the market, and even if found, their cost may not be justifiable. "AI Advisor" is a service designed to fill this "lack of a leader" by working alongside company executives.
Background 1: Only 4% of Japanese Companies Have Dedicated CAIOs; 41% Rely on CDO "Concurrent Roles"
According to a survey by the CDO Club Japan (published November 2025), approximately 90% of Japanese corporate management places importance on AI, and about 71% of those responsible for AI promotion report directly to the CEO. This indicates AI is positioned as a strategic management agenda.
However, only 4% of companies have appointed a dedicated CAIO, with the most common arrangement being concurrent responsibility by a CDO (Chief Digital/Data Officer) for AI promotion (41%). Approximately 66.6% of companies view AI as "part of their DX strategy," forming a unique Japanese model of "CDO concurrent roles."
This situation stems from a structural shortage of AI talent, making it extremely difficult to recruit individuals from the external labor market who possess expertise in cutting-edge AI, corporate management, and cross-organizational coordination. For many companies, "hiring a dedicated AI executive" is simply not a realistic option.
Shifting Trends: Major Domestic Companies Begin Appointing CAIOs
The tide is turning. From 2025 to 2026, major and forward-thinking companies across a wide range of industries, including digital advertising, system development, SaaS, and human resources/flea market services, have announced the appointment of CAIOs (or roles where CHROs or CDOs concurrently manage AI responsibilities) to oversee their AI strategies. This signifies a crucial phase where AI proficiency directly impacts business competitiveness, and the clear positioning of AI responsibility as a top management agenda is finally gaining momentum.
However, establishing such dedicated positions is limited to a select few large corporations with substantial talent budgets. While the sense of urgency regarding AI is shared, a "gap in AI promotion capabilities" could widen between these companies and mid-sized or growing firms lacking the financial resources to hire dedicated CAIOs. "AI Advisor" aims to bridge this gap, offering a way to secure strategic and governance functions at a level comparable to major corporations, without relying on hiring.
Background 2: Global AI Leader Compensation Soars; "Fractional" Roles Become Standard
Looking overseas, the competition for AI leaders is fierce. The median base salary for CAIOs in the United States reaches approximately $350,000 (approx. $351,519), with total compensation, including stock options, sometimes reaching millions of dollars at large corporations. Securing full-time dedicated personnel presents a significant financial burden for mid-sized and small companies.
Consequently, in the U.S., particularly among companies with annual revenues below several billion yen, the practice of hiring "Fractional CAIOs" has become widespread. These professionals work approximately 8-15 hours per week under retainer contracts (6-18 months duration) for monthly fees ranging from $5,000 to $15,000. This has become a practical solution for securing strategic planning and process governance equivalent to full-time employment with limited resources.
Source: 2026 CAIO Compensation Survey by executive search firms such as Riviera Partners and KORE1 for median base salary of US CAIOs. Fractional CAIO working hours and compensation conditions are also based on the same survey group.
Background 3: AI Executive Compensation Rising in Japan; Hiring Difficult for Companies with Annual Revenues in the Billions of Yen
In Japan as well, compensation for AI executives is on an upward trend. In the recruitment market, the expected annual salary for CAIOs/board-level positions responsible for a company's overall AI strategy, budget, and governance ranges from 15 million to over 30 million yen (with a volume zone of 18-25 million yen). For AI promotion manager-level roles below that, the benchmark is 8-15 million yen.
Furthermore, Japan faces an extreme shortage of "CAIO-qualified individuals" who can effectively balance business strategy with AI technical governance. For mid-sized companies and startups with annual revenues from hundreds of millions to several billion yen, hiring a full-time CAIO with an annual salary of 15 million yen or more is financially challenging. Against this backdrop, the model of contracting a "Fractional CAIO" on a commission basis, working 1-2 days a week for a monthly retainer (advisory fee) and requesting strategic and governance support on a spot basis, is beginning to spread as a practical solution in Japan.
"AI Advisor" is a service that, based on these domestic and international trends, provides Japanese management with an option to "secure AI expertise without hiring."
Source: Based on trends in the domestic AI talent recruitment market (compiled from public job posting data and salary ranges from various recruitment agencies).
Target Companies for "AI Advisor": Not Just Cost, but the "Absence of a Leader" Gap
The inability to hire a dedicated CAIO is not solely due to financial reasons. Many executives at mid-sized and growing companies share common concerns:
They want to promote AI across the company, but their own AI knowledge is insufficient.
They perceive inefficiencies in operations but don't know how or where AI can make improvements.
There is no one internally to entrust with AI implementation.
They want to stay updated on the latest AI information, which is constantly evolving, and apply it to management decisions.
These are not problems that can be solved simply by "paying to hire someone"; they represent a fundamental "gap in AI leadership and expertise." "AI Advisor" fills this void by working alongside executives, providing support from strategic brainstorming to operational improvements and input on the latest information.
CEO Comment
"When trying to hire AI-proficient talent as full-time employees, they are simply not available in the recruitment market. Even when they are, salaries for CAIO-level positions are routinely over 15 million yen. Only 4% of companies have dedicated CAIOs; many companies manage by having CDOs concurrently handle the role, but this often becomes a secondary task. We believe that AI expertise is shifting from something to be 'hired' to something to be 'secured as needed.' Our goal is to support AI decision-making alongside management and ultimately enable companies to utilize AI independently. That is the role of our 'AI Advisor.'"
Ryosuke Funahashi, CEO, TERRAISE Inc.
Features of "AI Advisor"
1. Operational Automation through AI Agent Platform Implementation
Leveraging technologies like Claude Code and MCP (Model Context Protocol), we securely link company-specific data with AI to support the creation of "automation pipelines" that handle tasks autonomously.
2. Simultaneous Construction of Risk Management and Governance
We assist in selecting security infrastructure for corporate use and formulating practical "AI Usage Guidelines." This ensures AI utilization progresses while maintaining a secure operational framework. In Japan, the "Act on Promotion of Research and Development and Utilization of Artificial Intelligence Technology" (AI Act) fully came into effect on September 1, 2025. The "CAIO Handbook (Draft)" published by AISI (AI Safety Institute) recommends the appointment of a CAIO (Chief AI Officer) as the internal general supervisor responsible for compliance with the Act, highlighting the growing importance of establishing governance structures.
3. Fostering Self-Sufficient Organizations within 3 Months
Beyond mere development outsourcing, we conduct operational reviews for each department and provide direct guidance to key personnel on-site. We support the creation of a system where company members can continue AI improvements independently after the contract ends.
Intended Use Cases
*The following are intended use cases by industry, not actual implementation results.*
Manufacturing (Mid-sized Manufacturer): For manual tasks like inquiry response (phone/fax) and paper invoice matching, we securely link product master data with AI. We aim for semi-automation of invoice processing and automatic generation of initial response drafts, while establishing AI usage guidelines that prevent leakage of drawings and technical information externally.
Service Industry (Recruitment Agency): To address the burden on staff for transcribing, summarizing interviews, and creating documents, we build a pipeline from "automatic transcription -> summarization -> reflection in recommendation letter format," enabling staff to focus on interviews.
Startup (SaaS Business): For small organizations unable to afford a CAIO, we provide AI promotion capabilities without hiring through fractional contracts. We aim for phased automation of tasks such as inquiry response, social media management, and expense accounting.
Service Overview
Service Name
AI Advisor (Fractional CAIO / Management AI Advisory)
Provider
TERRAISE Inc.
Target Audience
Corporate management of legal entities across all industries facing AI utilization as a management challenge.
Pricing
From ¥200,000 per month (varies by plan; contact for details)
Service Format
Monthly retainer contract (fractional model)
Official Website
https://terraise.co.jp/
Start by Understanding "Where AI Can Benefit Your Company"
It's okay even if you're at the stage of "not knowing where to start." TERRAISE offers a free "AI Utilization Diagnosis & Initial Consultation" to help identify areas where AI can be applied to your company's operations. We will review your current challenges together and provide insights and a roadmap for improvement on the spot. There is no obligation to make an immediate decision. ▶ Application & Consultation: https://terraise.co.jp/contact/
About TERRAISE Inc.
TERRAISE Inc., established in February 2025, is an AI education and AI implementation support company. As a startup originating from Musashino University's Faculty of Entrepreneurship, we offer "AX Academy," an operational automation training program utilizing the latest AI development tools like Claude Code, and "AX Compass," an AI implementation consulting service. We provide end-to-end support for AI utilization for a wide range of corporations, including manufacturing and educational institutions, from strategy formulation to on-site implementation, with a strength in "leaving behind AI that works on the ground."
TERRAISE Inc. Company Overview
Company Name
TERRAISE Inc.
Establishment
February 2025
Location
Shibuya Dogenzaka Tokyu Building 2F, 1-10-8 Dogenzaka, Shibuya-ku, Tokyo 150-0043
Representative
Ryosuke Funahashi, CEO
Business Activities
Corporate AI Training "AX Academy" / AI Implementation Consulting "AX Compass" / AI Advisor Service
Official Website
https://terraise.co.jp/
Contact for Media Inquiries Regarding This Release
TERRAISE Inc. Public Relations
Inquiry Form: https://terraise.co.jp/contact/
Email: info@terraise.co.jp
Statistical and market data cited in this release are based on information confirmed from each source as of the publication date. Overseas compensation data may vary due to exchange rates and survey timing. The content is subject to change without notice.
FACT BOX
- Source: PR TIMES
- Category: サービス提供
- Organizations: Riviera Partners / KORE1 / AISI