Personal injury practice · Financial impact analysis
Section 1 — Firm baseline (before integration)
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
$3,300
At contingency rate
Annual fee revenue (current)
$891,000
Annual
Pre-lit net profit (current)
$267,300
Profit-share baseline
Section 2 — Integration impact levers
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)
135 cases
At 1.5× capacity increase
Total active caseload (post-AI)
270 cases
Same pre-lit staff, more capacity
Post-AI case duration
6.5 months
Current minus AI reduction
Cases settled / yr (post-AI)
498 / yr
270 ÷ 6.5 × 12
Total incremental cases / yr
+228
Capacity: +135 · Duration: +93
Section 3 — Annual results: firm perspective
Time savings value
$145,800
Hours recovered × blended cost
Increased contingency fee revenue
$89,100
Better demands → higher settlements
Caseload growth revenue
$225,720
++228 cases/yr (capacity + duration effects)
AI platform cost (annual)
$12,450
Net cost: $25 per case
Total profit improvement
$448,170
Before leadership compensation
Annual fee revenue (post-AI)
$1,807,740
Cases settled × avg fee per case
New pre-lit net profit
$715,470
After AI costs, before comp
Section 4 — Integration leadership compensation
Section 5 — Compensation & net benefit to firm
Annual retainer
$90,000
Fixed cost to firm
Profit share
% of net improvement
Total compensation cost
$179,634
Retainer + profit share
Net benefit to firm
$268,536
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 $268,536 above the current baseline, after retainer and profit share. Return on compensation cost: 2.5x. The same 2 pre-lit staff members can handle 270 active cases post-AI (up from 180), and cases cycle in 6.5 months instead of 8 — generating 228 additional settled cases per year without adding headcount.