PI Practice Operations — Economics Model

Personal injury practice  ·  Financial impact analysis

Section 1 — Firm baseline (before integration)

2
90 cases
8 months
1.5 months
$17,500
33%
Median: ~33%
28%

Total active caseload (current)

180 cases

Pre-lit staff × cases per staff member

Cases settled per year (current)

270 / yr

180 ÷ 8 × 12 = 270

Avg fee per case

$5,775

At contingency rate

Annual fee revenue (current)

$1,559,250

Annual

Pre-lit net profit (current)

$436,590

Profit-share baseline


After AI integration, pre-lit staff capacity expands (more active cases simultaneously) and cases cycle faster (shorter duration). Both effects increase annual settled cases. The model applies them sequentially: capacity multiplier first, then post-AI duration.

Cases per staff member (post-AI)

117 cases

At 1.3× capacity increase

Total active caseload (post-AI)

234 cases

Same pre-lit staff, more capacity

Post-AI case duration

6.5 months

Current minus AI reduction

Cases settled / yr (post-AI)

432 / yr

234 ÷ 6.5 × 12

Total incremental cases / yr

+162

Capacity: +81  ·  Duration: +81

Section 2 — Integration impact levers

65%
1.3×
12 hrs
$60 / hr
Documented range: 15–30%
10%
$250

Section 3 — Integration leadership compensation

$7,500
20%

Section 4 — Annual results: firm perspective

Time savings value

$126,360

Hours recovered × blended cost

Increased contingency fee revenue

$155,925

Better demands → higher settlements

Caseload growth revenue

$261,954

++162 cases/yr (capacity + duration effects)

AI platform cost (annual)

$108,000

$250 per case

Total profit improvement

$436,239

Before leadership compensation

Annual fee revenue (post-AI)

$2,744,280

Cases settled × avg fee per case

New pre-lit net profit

$872,829

After AI costs, before comp


Section 5 — Compensation & net benefit to firm

Annual retainer

$90,000

Fixed cost to firm

Profit share

$87,248

20% of net improvement

Total compensation cost

$177,248

Retainer + profit share

Net benefit to firm

$258,991

Additional annual profit after comp and costs

Return on compensation cost

2.5x

For every $1 paid, firm gains $X

Compelling case — the firm gains significantly after all compensation

Net benefit of $258,991 above the current baseline, after retainer and profit share. Return on compensation cost: 2.5x. The same 2 pre-lit staff members can handle 234 active cases post-AI (up from 180), and cases cycle in 6.5 months instead of 8 — generating 162 additional settled cases per year without adding headcount.

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