How We Document Our AI Systems and Stay Ready for the EU AI Act

At Simuletic, machine learning and AI are woven into everything we build. Like most modern software companies, we use a mix of internally developed models and external AI services to power our products. Over the past year, though, the rules of the game have started to shift.

The European Union's AI Act introduces a comprehensive framework for how companies must classify, document, and govern AI systems. For most teams, the question isn't whether they want to be compliant — it's figuring out what exactly needs to be documented and how to do it without burying the engineering team in paperwork.

The New Reality: Documenting AI Isn't Optional

Most companies working with AI today don't rely on a single model. A typical stack might include:

• Third-party APIs for language models or image generation
• Machine learning models embedded directly in product features
• Internal data models for prediction or classification
• Automation pipelines that depend on AI outputs

Under the EU AI Act, organizations are expected to understand what AI systems they operate, how those systems are classified by risk level, and what governance processes exist around them.

For small and mid-sized companies, this can feel overwhelming fast. Traditional compliance workflows tend to involve lengthy legal documents, external consultants, and a lot of manual effort that pulls focus away from building product.

We went looking for a simpler way to keep track of our AI systems and produce the documentation the regulation expects — without turning it into a project of its own.

Finding the Right Tool

While researching AI governance tooling, we came across Paracta, a platform built specifically to help companies classify and document AI systems under the EU AI Act.

Instead of cobbling together internal spreadsheets or writing ad-hoc documentation, Paracta provides a guided workflow where teams can:

• Describe how each AI system is used in practice
• Walk through a structured classification questionnaire
• Determine the likely risk category under the EU AI Act
• Generate documentation for internal governance and external review

What stood out to us was the focus on clarity and structured output rather than heavy compliance infrastructure. It's designed for product teams, not just legal departments.

How We Use It in Practice

Our workflow is straightforward. We register each AI system we use — whether it's a third-party API integration, a model embedded in a feature, or an internal predictive system.

From there, we walk through the classification flow, which helps us understand how each system might be categorized under the regulation. The platform then produces structured documentation that covers:

• A clear description of the AI system and its purpose
• The reasoning behind its risk classification
• Governance and oversight notes
• Shareable documentation for internal stakeholders

This documentation feeds into our AI system inventory — something that more and more organizations will need as the regulation is enforced across member states.

Why This Matters Beyond Big Tech

The EU AI Act tends to get discussed in the context of large technology companies, but the reality is that plenty of smaller companies will also need to understand where their AI systems fit within the framework.

The biggest risk for most teams isn't that they're building high-risk AI — it's that they have no documentation at all about how AI is used inside their organization. Even basic records can make a meaningful difference when it comes to internal governance, answering customer questions, or preparing for future compliance reviews.

A Practical Starting Point

One thing we appreciated about the approach is that it doesn't try to replace legal expertise or build an overly complex governance layer. It focuses on a simple goal: helping companies understand, classify, and document the AI systems they use.

For product teams and startups that are adopting AI quickly, having a structured record of your AI systems is becoming increasingly important — not just for regulation, but for building trust with customers and partners.

Final Thoughts

AI regulation is still evolving, and many companies are only beginning to think about what compliance means for their products. The earlier you start documenting, the easier it is to adapt as the rules become clearer.

If your company is already using AI — whether through APIs, internal models, or product features — it's worth taking the time to understand how those systems are documented and classified.

Paracta helps companies classify and document AI systems under the EU AI Act — and it's a good place to start if you're looking for a structured, low-friction approach to AI governance.