Definition
MCP (Model Context Protocol) is an open standard for connecting AI applications to external data sources, tools and workflows through a common interface.
MCP explained
The Model Context Protocol's own documentation compares MCP to a USB-C port for AI applications: just as USB-C gives devices a standard way to connect, MCP gives AI applications a standard way to connect to external systems. AI applications such as Claude and ChatGPT, and development tools such as Visual Studio Code and Cursor, support it.
An MCP server exposes a system's data and actions, for example a CRM's contacts and a “create task” action, in a standard format. Any MCP-compatible AI application can then use them without a custom integration for each pairing.
For businesses, MCP matters in two ways:
- Internal agents: connecting AI assistants to your own tools and data through MCP servers, with proper authentication and permissions.
- External reach: offering an MCP server for your product so customers can use it directly from their AI assistants.
Security needs care. An MCP connection gives an AI system real access, so limit permissions, log actions and require approval for sensitive operations.
Example
Your team wants its AI assistant to answer questions using live data from your project management tool. Connecting the tool through an MCP server lets the assistant look up project status, deadlines and owners directly, with read-only access.
Why it matters
MCP makes it far quicker to connect AI assistants and agents to business systems, which is the step that turns chat into useful work.
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- Model Context Protocol: What is MCP? (checked 30 Sep 2026)
Published by Vidern, founded and led by Malhar Shah. Updated .
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Related terms
- Tool callingTool calling lets a language model ask software to run a function, such as a search, calculation or database update, and then use the result.
- AI agentAn AI agent is software that uses a language model to choose and take actions, such as searching, reading files or updating systems, to finish a task.
- Agentic AIAgentic AI is AI that works toward a goal over several steps, deciding what to do next and using tools such as search, databases and apps.
- Human in the loopHuman in the loop is designing an AI system so a person reviews, approves or corrects its work at key points, instead of letting it act fully on its own.