Super Taaza Bharat

Model Context Protocol (MCP) in Agentic AI Systems

Model Context Protocol (MCP) in Agentic AI Systems

Model Context Protocol (MCP) in Agentic AI Systems

Model Context Protocol (MCP) is an open standard for connecting AI models (especially large language models) to external data sources, tools, and services in a secure and standardized way[1]. Introduced by Anthropic in late 2024, MCP defines a universal interface for reading data (e.g. files or database entries), executing functions or API calls, and handling contextual prompts[1]. By providing a consistent “plug-and-play” protocol, MCP aims to break down information silos and replace the proliferation of custom integrations with a single, interoperable layer[2][3]. This allows agentic AI systems – AI agents that can plan and use tools – to access up-to-date context and perform actions in real-world systems more reliably. In this report, we detail MCP’s architecture and design, its origins and related work, how it compares to alternative approaches, adoption in industry, domain-specific use cases, supporting tools, and guidance for implementation.

MCP Architecture, Objectives, and Interfaces

Figure: Reference architecture for MCP in an enterprise context. Here multiple AI hosts (e.g. VS Code, ChatGPT, or Claude) run MCP clients that connect to various MCP servers. Each server exposes specific tools, data, or resources (from local files to cloud APIs), enabling the AI agent to fetch context or perform actions across systems via one standardized protocol[4][5].

MCP follows a client–host–server architecture[4]. In this model, an AI application (for example, a chat assistant or coding IDE with AI capabilities) acts as the host, which can manage one or more MCP clients. Each MCP client is essentially a connector within the host that maintains a stateful JSON-RPC session to an external MCP server[6][5]. The MCP server is a service (local process or remote) that provides a particular set of context or tools to the AI. The host coordinates these connections and enforces security, while each client–server pair handles a specific domain of data or functionality. All communication uses JSON-RPC 2.0 messages over a persistent connection, making the protocol language-agnostic and enabling two-way interaction (requests and notifications)[7][8]. This design takes inspiration from the Language Server Protocol (LSP) used in coding IDEs – similar to how LSP standardized language tooling across editors, MCP standardizes how AI systems integrate tools and context across applications[9].

Key components and interfaces: The MCP spec defines a set of standard capabilities that servers can offer and a corresponding set that clients (AI hosts) can handle[10][11]:

On the client side, MCP also defines features that servers can request from hosts[14]. These are mechanisms enabling the server to ask the AI or user for more information or to perform AI-driven operations:

All these interactions are governed by a standard interface using JSON schemas and message types defined in the MCP specification. Every MCP server declares the capabilities it supports (which resources, tools, prompts it provides) and every client declares which features it can handle (like whether it supports receiving tool definitions, handling server notifications, etc.)[16][17]. This capability negotiation happens when a connection is established, ensuring both sides know what features can be used during the session[16][17]. Thanks to the standardized JSON-RPC message format and schemas, any MCP-compliant client can interface with any MCP-compliant server and understand its offerings without custom coding[18][19]. In effect, MCP acts like a universal adapter or “USB-C port” for AI models to access external functionalities[20][21].

Design objectives: MCP’s core objective is to make AI context-aware and break the “black box” isolation of models by granting them safe access to real data and tools. Before MCP, hooking an AI assistant to each new database or API meant writing a bespoke integration or plugin, leading to an N×M explosion of adapters and significant maintenance overhead[3][22]. MCP addresses this by defining a single open protocol – once a data source or service is wrapped in an MCP server, any AI client that speaks MCP can use it, and once an AI platform supports MCP, it can connect to any compliant data source. This dramatically simplifies scaling AI integrations, moving from custom one-off connectors to a write-once, use-anywhere model[2][23].

Security and reliability were also top priorities in MCP’s design. The host (AI application) sits in between the model and tools specifically to enforce security, permissions, and user consent[24][25]. The user must approve what data sources and tools the AI is allowed to access, and servers are sandboxed – an MCP server cannot read the AI’s entire conversation or access other servers’ data unless explicitly permitted[26]. For example, a GitHub server would only receive repository queries, and a database server only gets the query it’s asked to run, rather than the full chat history. This principle of least privilege is built-in: “servers should not be able to see the whole conversation nor see into other servers”[26]. The protocol also emphasizes user control: the AI can’t invoke a tool (like executing code or sending an email) without the host first obtaining user consent[27][28]. Every action is mediated and can be logged. MCP includes guidelines for implementers to maintain audit trails of all requests and actions, to use proper authentication (e.g. OAuth tokens for sensitive APIs), and to respect privacy (only sharing minimal necessary data)[29][30]. In other words, MCP provides the plumbing for tool access, and it’s up to the host applications to build the guardrails around that plumbing (consent dialogs, permission scopes, rate limiting, etc.)[31][32]. Done properly, MCP allows enterprise-grade security and compliance even as AI agents tap into various systems.

In summary, MCP’s architecture is about modularity and standardization: an AI agent (host + model) can interface with many external resources through a uniform client/server protocol, rather than hard-coding each integration. The MCP interface handles finding out what a tool can do, invoking it with structured inputs, and returning results in a format the AI can use – all while the host maintains oversight. This lets AI systems maintain context continuity across multiple tools and data sources. For instance, an AI agent could pull a file from Google Drive, pass its content to a database query, then use the result to send a Slack message – all via MCP connectors – without the developers writing glue code for each step. MCP abstracts those connections behind a consistent API, so the AI’s reasoning process can focus on what it needs (e.g. “get customer record” or “send alert”) rather than how to call each service’s API.

Academic Background and Origins of MCP

MCP emerged from the recognition that as powerful as modern LLMs are, they are handicapped by their lack of direct access to fresh information and the ability to act. Prior to MCP, companies attempted various ad-hoc solutions to bridge models with external data. For example, OpenAI’s introduction of function calling in 2023 and the ChatGPT Plugins system were early attempts to let models execute code or query APIs, but these required vendor-specific schemas or plugins for each tool and lacked a universal approach[33]. Each AI provider or framework was creating its own ecosystem of plugins and integrations, leading to duplication and incompatibility. Anthropic’s team framed this as an “N×M integration problem” – every new model or AI assistant (N) needed custom integration for each new data source (M), resulting in N×M work overall[3].

Anthropic formally announced MCP on November 25, 2024 as an open standard to tackle this problem[1][3]. Although the effort was industry-driven, there are notable academic and engineering precedents that influenced MCP’s design:

MCP did not originate as a peer-reviewed academic paper, but it has since drawn interest from researchers. For instance, an early 2025 arXiv preprint by Hou et al. analyzed “MCP: Landscape, Security Threats, and Future Research Directions”, examining how MCP might evolve and how to address vulnerabilities. Researchers have noted MCP’s similarity to other standardization efforts like OpenAPI/Swagger (which standardizes REST API descriptions) – in fact, tech press nicknamed MCP the “USB-C for AI”, emphasizing how it promises a universal connector in the AI tool ecosystem[36][37]. As of early 2025, MCP is being discussed not just as an engineering tool, but also in the context of AI governance and safety: a standard like MCP, if broadly adopted, could simplify auditing what tools an AI can access and ensure consistent enforcement of policies across different AI platforms[38][31].

In summary, the development of MCP was driven by industry practitioners (Anthropic and partners) rather than academia, but it synthesizes ideas from prior art in both research and practice. It builds on lessons from prompting strategies (ReAct, CoT), earlier integration hacks (function calling, plugins), and software architecture (LSP, microservices) to create an open protocol. Its introduction has been seen as a milestone in making AI systems more extensible and practical, garnering support from key AI players soon after its release. Within months of launch, OpenAI and Google DeepMind publicly endorsed MCP and announced plans to integrate it[39][40], lending further credibility to MCP as an emerging standard, not just a single-vendor proposal.

Related Work: MCP vs Other Approaches for Context and Tool Use

MCP is entering a landscape where many approaches already exist for injecting context into AI and orchestrating tool use. Key alternatives and complementary solutions include agent prompting strategies, AI orchestration frameworks, and other emerging protocols. The following table compares MCP with several notable approaches:

Approach

Description & Focus

Standardization

Example Uses & Notes

Model Context Protocol (MCP)

Open protocol standardizing how AI applications connect to external tools and data sources via a client–server JSON-RPC interface[7][1]. AI assistants use MCP to discover available “tools” (functions), “resources” (data), and “prompts” from any MCP-compliant server.

Yes (Open spec by Anthropic, SDKs in multiple languages)

Allows plug-and-play integration of new tools without custom code[18]. Focuses on context injection rather than decision logic – an agent’s “USB-C port” for data[20]. Widely adopted by Claude, ChatGPT (desktop), Apollo GraphQL, etc.

ReAct Framework

Reason+Act prompting technique: the AI interleaves thought (reasoning) and tool usage in a single loop[34]. The LLM generates a chain-of-thought, decides on an action (tool call), gets the result, and continues reasoning.

No formal protocol (prompt pattern)

ReAct is a methodology used within an agent’s prompting. It relies on some mechanism to execute the tool (e.g. via code or function call) but doesn’t specify how tools are integrated. Often implemented in agent libraries to let the model decide when to call a tool. It complements MCP: MCP can supply the list of tools, while ReAct logic inside the AI decides which to use and when.

LangChain (Tool Wrappers)

A popular Python/JS framework for building LLM applications. LangChain provides abstractions for “tools” (Python functions or API calls) and an agent loop that uses an LLM to pick tools.

Library-specific (de facto standard within its ecosystem)

LangChain offers many pre-built integrations (Google search, databases, etc.), but each is essentially a wrapper coded for LangChain. There’s no universal interface beyond its API. Without MCP, adding a new tool means writing a new wrapper. With MCP, LangChain can act as an MCP client or incorporate MCP servers as tools, leveraging the open ecosystem instead of maintaining its own for every service.

Semantic Kernel (SK)

Microsoft’s open-source SDK for orchestrating AI “skills” (functions), memory, and planning (supports .NET, Python). It emphasizes planning and reusable skills for enterprise scenarios.

Framework (open-source, not an industry standard)

SK has a plugin model and recently added MCP integration: teams can register MCP tools/servers as SK skills[41]. This means a Semantic Kernel app can use MCP to tap into external data. SK focuses on orchestration logic (e.g., chaining steps, managing prompts) – it can use MCP as the unified way to execute those steps securely.

ChatGPT Plugins & OpenAI Functions

Proprietary plugin system (2023) where external services expose an OpenAPI spec and the model can be prompted to call those APIs. OpenAI’s function calling allows a developer to define functions the model can invoke with JSON args.

Partial standard (OpenAPI used for plugins, but OpenAI-specific runtime)

Solved similar problems in a closed way – e.g. the ChatGPT Retrieval Plugin let an AI query a vector DB. However, each plugin was specific and required OpenAI’s approval. No interoperability with other AI systems. MCP generalizes this: rather than each vendor having unique plugin formats, MCP provides one format any vendor can adopt. Indeed, OpenAI has now adopted MCP as a standard for its ecosystem[42].

Agent-to-Agent (A2A) Protocol

A new protocol (spearheaded by Google) for communication between AI agents or services[43]. It defines JSON-based message formats for agents to share tasks, results, and coordinate without human intervention.

Yes (Open spec for multi-agent collaboration)

A2A is complementary to MCP. It addresses how multiple agents talk to each other (for example, one agent delegating a subtask to another)[43][44]. However, agents still need data and tools to act on – that’s where MCP comes in[44]. In a full agentic system, A2A could enable a network of agents, and MCP would allow each agent to connect to the necessary resources. Both aim to be vendor-agnostic standards in the AI ecosystem.

In summary: MCP is not an agent algorithm or a planning framework – it does not tell the AI when to call a tool or which tool to choose. It simply standardizes the interface to tools and data. The logic for deciding to use a tool (like ReAct’s reasoning process or a LangChain agent’s loop) operates on top of MCP[45]. In fact, IBM’s overview of MCP emphasizes that “MCP is not an agent framework, but a standardized integration layer… MCP does not decide when a tool is called or for what purpose”[45]. Instead, it complements those higher-level orchestrators, providing the reliable plumbing so they don’t have to hard-code integrations. This distinction is important: one could use LangChain or Semantic Kernel to build an AI agent’s logic, but use MCP to handle the actual tool execution calls – benefiting from the growing library of MCP servers.

Other related efforts include proprietary platforms like Moveworks or IBM’s Watson Orchestrate, which integrate enterprise systems with AI (often with their own SDKs). What sets MCP apart is its aspiration to be an open standard – much like HTTP or SQL, anyone can implement it and it’s not tied to one vendor’s stack[39]. The rapid endorsement by industry leaders (Anthropic, OpenAI, Google, Microsoft, etc.) suggests MCP is on a path to become the universal glue for AI tool use, analogous to how REST APIs became the universal way to connect web services[46][47]. MCP’s open nature also means it can integrate with emerging ideas (like agent-to-agent protocols, or new tool schemas) without being locked down.

To illustrate how MCP sits relative to others: if building an AI solution, one might use an agent framework (LangChain or a custom planner) to manage the conversation and reasoning, and use MCP to handle connecting to various enterprise systems needed for that reasoning. This is different from early approaches like ChatGPT Plugins, where the logic and integration were intermixed in a closed environment. As the table above shows, MCP’s main “competitors” are not exactly apples-to-apples – many are either lower-level (protocols for multi-agent or API descriptions) or higher-level (agent planning libraries). MCP aims to fill a middle layer role that hadn’t been standardized before.

Enterprise Adoption of MCP

Since its launch, MCP has seen swift uptake across the AI industry, with both AI platform providers and enterprises adopting it to streamline their AI integrations. Major tech companies and startups alike are building MCP support into their products or using it internally, seeing benefits in flexibility and reduced integration work. Table 1 below highlights some notable examples of MCP adoption in production systems and the patterns emerging:

Organization / Product

MCP Adoption

Benefits, Challenges, and Rollout

Anthropic (Claude)

Originator of MCP. Built MCP support into the Claude ecosystem from the start. The Claude Desktop app can run local MCP servers to access a user’s files, repos, etc.[35][48]. Anthropic open-sourced reference MCP servers (connectors) for common services (Google Drive, Slack, GitHub, Git, databases, etc.)[35][49].

By dogfooding MCP, Anthropic enabled Claude to work with enterprise data out-of-the-box. Claude for Work users can deploy MCP servers to hook Claude into internal systems[50]. This became a selling point for Claude in corporate settings. Anthropic’s investment in an open ecosystem jump-started community contributions (connectors for many apps). The challenge has been educating developers on the new paradigm, but the inclusion of MCP in Anthropic’s offerings (and training Claude to handle MCP outputs) greatly lowers integration barriers.

OpenAI (ChatGPT & Azure)

Adopted MCP in 2025. OpenAI announced in March 2025 that it would integrate MCP across ChatGPT (especially the ChatGPT desktop app) and its Agents API/SDK[42]. Sam Altman framed this as standardizing AI tool connectivity and making multi-modal/agent development easier[51]. Azure OpenAI service similarly published guidance for using MCP with enterprise data[52].

OpenAI’s adoption was a turning point, effectively validating MCP as the “universal standard” rather than a competitor’s tech. This enabled ChatGPT to interface with the same MCP servers that Claude or others use, meaning a company could develop one set of connectors and use them with multiple AI models. For OpenAI, a benefit is offloading connector development to the community. A challenge mentioned was aligning on security defaults, since initial MCP versions lacked some enterprise auth features (OpenAI and others have since worked to include OAuth and more robust auth in the protocol)[53][54].

Google / DeepMind

Supporting MCP via Apigee and future models. In April 2025, Demis Hassabis of DeepMind confirmed that the upcoming Gemini LLM will support MCP natively[55]. Google Cloud’s API management platform, Apigee, released an open-source MCP server template that wraps enterprise APIs with proper authentication and observability[56][57]. This effectively lets companies expose their existing REST APIs as MCP tools in a secure way (leveraging Apigee’s API keys, OAuth, monitoring, etc.).

Google’s embrace is multi-faceted: enabling MCP in DeepMind’s models ensures their AI agents can plug into the same ecosystem, and using Apigee bridges MCP with existing enterprise API programs[58][56]. Google’s blog notes that MCP alone “doesn’t speak to” all enterprise needs like governance, so Apigee augments it with enterprise features[53]. The benefit is bringing the vast world of REST APIs into the MCP fold with minimal fuss. Enterprises can continue managing APIs as they do, while simply adding an MCP layer on top. This addresses a challenge in adoption: securing MCP in large organizations. With Apigee, Google basically provided a blueprint for enterprise-ready MCP (auth, auditing, scaling).

Apollo GraphQL

GraphQL interface for MCP. Apollo, a leader in GraphQL, built an Apollo MCP Server that turns GraphQL schemas into MCP tools[59]. This was released as a way for businesses to let AI agents query their GraphQL APIs securely using MCP. Apollo also integrated MCP into its Apollo Studio tooling. Early adopters like Block and Apollo itself used this to allow AI assistants to pull structured data via GraphQL queries[60].

Apollo’s involvement demonstrates MCP’s flexibility – even modern API styles like GraphQL can be exposed via MCP. Developers get to reuse their GraphQL resolvers; the MCP server just translates AI requests to GraphQL queries and returns the results. InfoQ reported that this approach allows “integrating AI agents with existing APIs using GraphQL” and can accelerate projects[59][61]. The challenge was ensuring the AI forms correct GraphQL queries; Apollo’s server provides schemas to the AI (as tools) so it knows what queries are possible. Apollo’s adoption pattern is a gateway model: use MCP as a gateway in front of APIs. This pattern is increasingly common in enterprise rollouts, where MCP servers are set up as an API façade that AI can talk to, rather than AI hitting back-end APIs directly.

Block, Inc. (formerly Square)

Internal adoption for knowledge management. Block was an early MCP partner – their CTO Dhanji Prasanna praised MCP as “the bridges that connect AI to real-world applications”, aligning with Block’s open-source philosophy[62]. Block integrated MCP to connect internal knowledge bases, documentation, and tools to their AI assistants[60].

For Block, the appeal was simplifying how their internal AI (used for e.g. employee support or coding assistance) accesses various internal systems. Rather than writing one plugin for Confluence, another for Jira, another for internal APIs, they use MCP servers for each and have a consistent way to manage auth and logging. The benefit is agility: teams can stand up a new connector in hours (Claude 3.5 was even used to help generate some connectors automatically[63]). A noted challenge is versioning and maintenance of many small servers, but Block mitigated this by contributing back to the open-source repo so that many connectors are maintained collaboratively.

Developer Tools (Zed, Replit, Sourcegraph, Codeium)

MCP in coding assistants. Several dev-tool companies integrated MCP to give AI coding assistants live access to codebases and dev environments. Sourcegraph, Replit, Zed IDE, and Codeium all announced MCP support, so their AI features (code chat, autocompletion, troubleshooting bots) can fetch relevant code, documentation, or even execute dev workflows via MCP[60][64]. For example, Replit’s ghostwriter agent can use MCP to open files or run build commands in a project.

These adoptions follow a common pattern: improving code context for AI. Instead of static context windows, the AI can on-the-fly ask for “function definition X from file Y” using an MCP file server, or query recent Git commits using a Git MCP server[65][66]. Developers see fewer hallucinations because the AI can double-check facts in the actual repo. Sourcegraph reported that MCP let them simplify their “context fetching” subsystem – they no longer need to maintain a custom API for the AI; they expose their code index via an MCP server, which any AI can use. A challenge in this domain is performance: searching a large codebase or indexing tens of thousands of files via MCP must be optimized (some teams built streaming results into their resource servers). Overall, MCP is enabling a more IDE-like experience in code assistants, where the AI can autonomously navigate and modify the project, not just answer questions blindly.

Dynatrace (Observability)

Monitoring data via MCP. Dynatrace, an observability platform, created an MCP server that exposes monitoring and incident data to AI agents[67]. This means an AI co-pilot for SRE/DevOps can query metrics, logs, or alerts through MCP rather than through proprietary APIs. Dynatrace’s blog series on “agentic AI” showcases how an AI agent could diagnose an outage by pulling data from Dynatrace and other sources using MCP[68][67].

This use highlights MCP for IT automation. The MCP server connects to Dynatrace’s REST API and streams back observations. The benefit is an AI assistant (like in a chatops scenario) can ask in plain English, “What’s the CPU trend on service X in the last hour?” and via MCP the agent gets the data and perhaps even calls a graphing tool. Dynatrace’s approach also combined MCP with the aforementioned A2A (agent-to-agent) protocol, envisioning multi-agent systems where one agent monitors metrics and another takes action[44][69]. Challenges include trust and correctness – ensuring the AI doesn’t misinterpret the data – which Dynatrace addressed by keeping the human in the loop for validations. Nonetheless, they see MCP as key for feeding real-time data into autonomous remediation workflows.

Wix (Web Development)

AI web editor with MCP. Wix, a website builder platform, embedded an MCP server in their system so that AI tools could interact with users’ websites and data. Announced in early 2025, the “Wix MCP Server” allows an AI to read and modify site content, manage design components, or fetch analytics via MCP calls[70][71]. This powers Wix’s AI Assistant that can make live website edits on user request.

This example shows MCP enabling domain-specific actions: an AI could function as a website co-designer, because through MCP it can, say, retrieve the site’s color palette or create a new page. The benefit is a far more interactive AI helper for customers – instead of saying “Go add a blog section manually,” the AI can actually add it for you via the MCP server interfacing with Wix’s backend. Wix found that using MCP simplified exposing their internal APIs safely to the AI. They implemented granular permissions (e.g. the AI can only edit the user’s own site data, tied to their account) within the MCP server. One challenge was ensuring no malicious instruction could cause undesired site changes – addressed by requiring user confirmation for publish actions (leveraging MCP’s tool permission framework).

Others: Microsoft, IBM, etc.

Beyond these, Microsoft integrated MCP into its Copilot offerings – e.g. Copilot for Teams can use MCP to fetch info from SharePoint or other MS systems, and the new Copilot Studio supports adding MCP connectors for custom data[72]. IBM’s AI platform includes support for MCP in its orchestration tools[45]. Numerous startups (e.g. Moveworks, Fluid.ai) have written about MCP being key to their enterprise AI strategy[73][74]. Open-source enthusiasts have created community MCP servers for everything from Zotero (academic references)[75] to Spotify playlists.

The broad adoption underscores a network effect: as more companies adopt MCP, it becomes increasingly valuable to have MCP connectors for popular apps, which in turn makes adopting it easier for the next company. Microsoft embracing MCP (despite having their own Semantic Kernel) signals that even big players prefer a common standard to countless adapters[41]. Enterprise SaaS vendors are starting to publish official MCP connectors for their services (e.g. Salesforce, ServiceNow, Snowflake have all seen community or official MCP servers emerge). The challenge ahead is versioning and governance of the standard – an MCP Working Group has formed (with members from these companies) to manage updates so that everyone stays compatible.

Patterns in enterprise rollout: Organizations typically start with a pilot project to integrate one or two key systems via MCP, then expand. For instance, a bank might first connect an internal knowledge base and email system to an AI assistant using MCP, and once that’s successful, add more feeds like CRM data or transaction databases. Many enterprises report taking a phased adoption – test locally (often with a single-user desktop AI app connecting to local MCP servers), then move to a self-hosted MCP server in the backend that multiple users’ AI agents can query. Anthropic’s documentation notes that developer teams often experiment with MCP servers locally and then deploy remote servers “that can serve your entire organization”[50].

Another pattern is leveraging cloud infrastructure for MCP servers. Because MCP is just JSON over a stream, it’s easy to deploy servers as microservices. Cloudflare, for example, published a tutorial on deploying MCP servers to their Cloudflare Workers platform for scalability[76]. Similarly, Microsoft showed how to host MCP servers in Azure with full CI/CD pipelines[52]. This devops angle means enterprise IT can manage MCP connectors just like any other service (with monitoring, logging, and isolation), which eases security teams’ concerns.

Finally, a noteworthy trend is the creation of MCP Marketplaces/registries. The community launched sites like mcpmarket.com and mcp.so, which list hundreds of available MCP servers (connectors) contributed by various developers[77]. This is analogous to app stores or API marketplaces – a company can find pre-built MCP connectors for many common tools (e.g. Google Calendar, HubSpot, Jira) and deploy them, rather than reinventing the wheel. Enterprise adoption benefits from this shared ecosystem: it lowers the cost to integrate each new system. However, companies also vet these connectors for security and often fork them into internal repos to review the code, given the sensitivity of data involved.

In summary, MCP’s enterprise adoption shows a convergence of AI providers and enterprise developers on a common standard. Early adopters have reported that MCP significantly reduced integration times (going from weeks of custom development to days or hours to wire up a new tool) and improved the maintenance of AI integrations (since updates to a tool’s API can be handled in one place, the MCP server, rather than in every agent implementation). The challenges are ensuring robust security and performance at scale, but the ecosystem (Anthropic, OpenAI, etc.) is actively addressing these by evolving the spec. With heavyweights like OpenAI and Google on board, MCP is on track to become as ubiquitous for AI-tool integration as HTTP is for web services.

Practical Use Cases of MCP Across Domains

One of MCP’s strengths is that it is domain-agnostic – any scenario where an AI might benefit from external context or the ability to take actions can leverage MCP. Below, we explore how MCP is being applied in three important domains, highlighting concrete use cases:

Software Engineering and DevOps

In software development, AI assistants (like GitHub Copilot, Replit’s Ghostwriter, or Sourcegraph’s Cody) are already helping with code suggestions and questions. MCP supercharges these assistants by giving them direct access to project data and developer tools:

Overall, in software engineering, MCP is bridging AI with the rich set of developer tools and data. It transforms AI from a passive autocomplete on your code to an active agent that can search your project, consult documentation, run test commands, and more. Early metrics from companies using MCP in coding show improved solution rates for coding queries and reduced hallucinations, since the AI can verify information (e.g., checking the actual codebase for a function definition rather than guessing). A notable benefit is time saved on context switching – developers don’t have to leave their IDE to fetch info for the AI, the AI can fetch it itself. One challenge is ensuring the AI doesn’t introduce breaking changes or act without oversight; hence most coding MCP use cases still require the human to approve certain actions (like committing code), using MCP’s consent mechanisms. But as confidence in AI grows, we might see more autonomous agent actions (especially for routine tasks like updating config files across repos).

Healthcare (Clinical Context Integration)

Healthcare is a sector where AI has huge potential – from assisting in patient interactions to analyzing medical data – but is also high-stakes and heavily regulated. MCP is making inroads here by enabling AI models to safely access and act on Electronic Health Records (EHRs) and other medical data, which are typically siloed in hospital systems:

In summary, MCP in healthcare is all about giving AI access to the right patient context at the right time, while ensuring strict controls. The results are promising – more informed AI recommendations, reduction in clerical load, and potentially better patient outcomes through timely insights. The audit trail aspect is worth re-emphasizing: every MCP interaction can be logged (user X’s AI agent accessed data Y at time Z)[82][83]. This not only helps with compliance (GDPR, HIPAA) but can also be leveraged for continuous monitoring of AI behavior. For example, if an AI starts querying unusually broad data (potential privacy issue), systems can flag it, thanks to uniform logging. Physicians like Dr. Harvey Castro have commented that “the real limitation of clinical AI isn’t the model; it’s the context” – MCP is closing that gap[92][93]. Of course, challenges remain: integration with legacy EHRs is non-trivial (healthcare IT is notoriously heterogeneous), and significant validation is required to trust AI outputs in critical settings. But MCP provides a path to carefully introduce AI into the clinical workflow, starting with low-risk tasks (note-taking, information retrieval) and gradually expanding as confidence grows[94].

Finance and Banking

In finance, where accuracy, auditability, and security are paramount, MCP is powering a new generation of AI assistants that can actually do things rather than just chat. Key use cases include:

The financial domain pushes MCP to its limits in terms of security and trust. Fortunately, MCP was built with this in mind: it supports authentication tokens, end-to-end encryption (often TLS for transport), and fine-grained permissioning. In one deployment, they set up granular permissions such that the AI could only call certain MCP tools if certain conditions were met (e.g., high-value transfers required that the user had a particular KYC level and 2FA)[107]. This was enforced in the MCP server logic. Another safeguard is tool metadata: developers include descriptions and usage guidelines for each tool, so the AI is less likely to misuse them[108]. For example, a tool trigger_smart_contract might have a note “For dev use only, requires admin rights” – the AI client sees this and (if properly instructed) will avoid calling it unless appropriate.

Financial firms also appreciate that MCP doesn’t open a direct door into systems without oversight; the host application (which they control) mediates everything. Many are integrating MCP into their existing authentication flows – e.g., if a user is chatting with an AI in a banking app, the MCP client on the host can pass along the user’s auth token to the MCP server to ensure the AI agent only accesses that user’s data. Essentially, MCP can be slotted into the existing zero-trust security model: the AI is just another microservice requesting data, and it must present credentials and be authorized like any other service. Skyflow, a data security company, even announced tools to facilitate using MCP in a way that keeps sensitive data safe (like tokenizing data and only revealing it to the AI transiently), with full audit trails for GDPR and HIPAA compliance[109].

In conclusion, in finance MCP is enabling AI with real agency – not just advising, but actually executing transactions under controlled conditions. Early adopters have reported vastly improved customer experiences (users can accomplish tasks via chat in seconds that previously required navigating apps or calling support) and internal efficiency (agents automating what analysts or ops staff did manually). The big challenge remains trust: finance is conservative, and these AI systems require rigorous testing to ensure they won’t err (e.g., transfer money to the wrong account). MCP’s structured and logged approach is what makes stakeholders comfortable to experiment – they can review logs, set tight permissions, and incrementally expand AI’s autonomy. The comprehensive logging (“comprehensive audit trails” with every parameter and result recorded)[99] is a safety net: if something ever goes wrong, they can trace exactly what happened. And importantly, MCP’s standardized nature means all this doesn’t have to be re-built for each use case; a well-designed MCP integration layer can be reused across many financial products, from retail banking to insurance to capital markets.

MCP Ecosystem: Open-Source and Commercial Tools

From the beginning, MCP was envisioned not just as a spec but as an ecosystem of interoperable tools. Today, that ecosystem is flourishing, with numerous open-source and commercial offerings that implement or support MCP:

In sum, the MCP ecosystem is rapidly growing akin to an app ecosystem for AI. Open-source contributions ensure that there’s likely already a connector available (or at least a starting point) for many popular systems a team might want to integrate. Commercial players are integrating MCP into their platforms, which signals confidence that it’s here to stay. This ecosystem lowers the barrier for AI projects: instead of spending weeks writing glue code, a team can assemble existing MCP components. However, with so much out there, one challenge is quality control – not all community servers are of equal maturity. Enterprises might choose vetted connectors (some vendors may offer certified ones). Over time, we might see consolidation or official “MCP connector libraries” maintained by groups of companies (similar to how many contributed to LSP language servers).

Ultimately, the existence of marketplaces and many tools for MCP is a sign of a healthy standard. It reminds of how once a standard like HTML or REST took off, a whole ecosystem of servers, clients, and tooling followed. MCP appears to be following that trajectory in the AI agent world.

Implementing MCP: How Teams Can Get Started

For teams interested in leveraging MCP, the good news is that you don’t have to start from scratch. Here is some guidance on implementing MCP-compliant servers or integrating MCP into your AI systems:

  1. Start with the Official Quickstart and SDKs: The MCP Quickstart Guide[119] (available on modelcontextprotocol.io) walks through building a simple MCP server – often a “Hello World” style example like an Echo server or a basic file reader. Following this guide using the SDK in your preferred language is a great way to grasp the basics. The SDK will handle setting up the JSON-RPC connection, so you can define a couple of resource or tool methods and see how an AI client calls them. Anthropic’s Claude 3.5 was reportedly even used to help generate boilerplate for new servers[63] – highlighting that you can use AI (maybe even Claude itself) to assist writing your connector code, guided by the spec.
  2. Leverage Pre-Built Connectors: Before implementing a new MCP server, check the open-source repositories and marketplaces for an existing one. There’s a high chance someone has built at least a prototype for common systems. For example, if you need an MCP server for GitLab, search the community repos – you might find one that you can fork. This can save significant time. Even if the connector isn’t production-ready, it provides a reference for the API calls and data models needed. Many community servers have permissive licenses (MIT/Apache) so you can modify them for your own use. Just be sure to review security (e.g., remove any debug features, ensure dependencies are up to date, and add necessary auth checks).
  3. Security First – Authentication & Authorization: When you implement your own MCP server for an internal system, you must think about how it will authenticate requests and authorize operations:
  4. Authenticate the AI client: If your MCP server is remote (not running on the user’s machine), it should require authentication (e.g., an API key, token, or mutual TLS) so that only your intended AI agent can connect. The initial MCP spec didn’t mandate an auth scheme, but enterprise setups often use OAuth2 or API tokens to secure the channel[54]. For instance, Apigee’s reference MCP server uses OAuth tokens to authenticate calls[120]. If the AI host is something like Claude or ChatGPT on a desktop, typically that host app handles a local connection with no auth (assuming local = trusted). But for any client-server across a network, build in auth.

  5. Authorize each tool/action: Within your server, implement permission checks if needed. For example, if you create an MCP server for a database, you might want to restrict which tables or queries the AI can run. Or if an action is destructive (deleting records), you might require a special flag or user confirmation. MCP’s design encourages hosts to ask user consent for tool use[28], but you can add server-side checks as a second layer (“the AI tried to call ‘delete_user’, but we’ll deny unless user explicitly allowed admin actions”). Many teams map user roles to allowed MCP tools; e.g., an AI acting on behalf of a read-only user should not expose write tools.

  6. Logging and Audit: As you implement, ensure you use MCP’s logging hooks or simply add your own logging around each request. Log at least the tool name, parameters, and outcome. This will be invaluable for debugging and compliance. Some SDKs have built-in logging that you can enable. There are also patterns for correlating AI requests with user sessions (e.g., pass a session ID from the host to the server in the MCP initialization so that the server can include it in logs).
  7. Host Integration (AI side): If you have your own AI application or are using an open-source agent, you need it to act as an MCP client/host. Many existing agents (LangChain, etc.) don’t natively speak MCP (yet). You might integrate by using the official MCP client library in the host application. For example, if you have a custom chatbot app, use the MCP SDK to create a client, connect to your servers, and then program your LLM to use those tools. If your agent is built with OpenAI’s function calling, you can still use MCP: treat MCP as the backend – e.g., define one OpenAI “function” that is basically call_mcp_tool(tool_name, params) and implement its logic to forward that to the MCP client. However, increasingly, AI providers handle this for you: Claude and ChatGPT apps now manage the MCP client under the hood – you just point them to the server and the AI will incorporate the new tools automatically in its reasoning.
  8. Implementing an MCP Server – Best Practices: When coding an MCP server, here are a few tips gleaned from early implementations:
  9. Keep servers single-responsibility: It’s better to have multiple small MCP servers than one gigantic one. For instance, one for “Database X” and another for “Salesforce” rather than one monolith that does everything. This aligns with MCP’s design principles of composability and isolation[121][122]. It makes debugging easier and limits blast radius (a bug in one connector won’t crash others).

  10. Use Clear Schemas and Descriptions: Define the input/output schema for each tool or resource carefully (the SDK often uses decorators or JSON schema definitions). Include helpful descriptions – these get passed to the AI and help it understand how to use the tool properly. If you spend time on good documentation, you’ll find the AI uses your tools more effectively[108][123]. For example, describe not just “input: account_id (string)” but “input: account_id – the unique ID of the user’s account to retrieve balance for”.

  11. Handle Errors Gracefully: If a tool call fails (exception, API error), return a structured error through MCP. The spec has error reporting guidelines and codes. By handling errors (like “network timeout” or “invalid parameters”) and returning an informative message, you allow the AI (or user) to adjust. Some servers even implement retries or alternative actions – e.g., if one API endpoint fails, they catch it and suggest the AI try a fallback tool. At minimum, logging errors and sending a clear error message helps maintain trust (the AI can say “I couldn’t retrieve the data because: permission denied” rather than just failing silently).

  12. Progress and Cancellation: For long-running tools, consider using MCP’s support for progress updates or server-sent events. For instance, a tool that generates a lengthy report might periodically send progress notifications (supported by the protocol as an optional feature)[124]. Also implement cancellation if possible – if the user cancels the request in the UI, the host can send a cancel message to the MCP server (the spec defines a way to handle that). It’s these little features that make the integration feel smooth rather than brittle.

  13. Testing with AI-in-the-loop: Once your server is up, test it with the actual model in a controlled setting. Sometimes you’ll find the AI doesn’t use a tool as expected or formats a query incorrectly. You may need to tweak the tool names or descriptions to be more intuitive. For example, if the AI confuses two tools, renaming them to be clearer (like search_transactions vs search_customers rather than both being search) can help. You might also add example usages in the description if the model supports seeing that. Essentially, treat it like API UX for an AI user!
  14. Integrate into Team Workflow: After building and testing, deploy your MCP server (maybe containerize it) and make it accessible to your AI of choice. Ensure team members know how to connect their AI clients to it. If it’s internal, you might bake the connection into the AI’s interface. For instance, a company could fork the ChatGPT desktop app to auto-connect to their internal MCP servers on startup, so users don’t even have to configure anything. Provide training or documentation to your team explaining what new “abilities” the AI has with MCP. It can be useful to share example prompts that leverage the new tools (“Try asking the AI: What is the revenue this quarter? It will now use the MCP connector to fetch the data from our CRM.”).
  15. Iterate and Monitor: Implementation isn’t one-and-done. Monitor usage: see which tools the AI uses frequently or where errors occur. This might lead you to refine the server or add new endpoints. Also stay updated with the MCP spec – join the community channels. If a new version comes (say, adding a feature you need like streaming input or improved security), plan to upgrade your servers. Because MCP is open, you might even contribute improvements or new servers back to the community, which is a great way to collaborate (some companies contribute non-sensitive parts of their connectors to get feedback and improvements).
  16. Scaling and High Availability: If your MCP server becomes mission-critical (e.g., serving many AI requests), ensure you treat it like a production service. That means adding monitoring (you can instrument it to log to your monitoring system when it handles requests), possibly load-balancing if needed (MCP is stateful per session, but you can have multiple servers and direct different client sessions to different instances), and failover (the AI should handle if a server disconnects – most clients will attempt to reconnect, or you can design a fallback). Having multiple smaller servers also helps scale horizontally.
  17. Security Audits: Since MCP servers often touch sensitive data, get them reviewed by security teams. They should check for things like injection vulnerabilities (if your server takes a query parameter and runs it against a DB, ensure you parameterize queries to avoid SQL injection from a malicious prompt – yes, prompt injection can try to trick the AI into sending bad queries). Also ensure the server doesn’t inadvertently leak data between sessions (each client connection is separate – ensure any in-memory cache or global doesn’t mix user data). Use MCP’s isolation principle as guidance: the server should consider each request in isolation except where context is explicitly allowed.
  18. Community and Support: If you run into issues, the MCP community is a great resource. Many early implementers share their experiences on forums or Slack/Discord groups. Because multiple big companies are behind it, you may even find official support channels via Anthropic’s or OpenAI’s enterprise support if you’re a customer using MCP with their products. Don’t hesitate to ask questions or even request features – the protocol is evolving with input from its users.

By following these steps, teams can implement their own MCP-compliant servers or integrate existing ones relatively quickly and safely. The key is to think of MCP servers as extensions of your AI’s brain – they give it eyes and hands, in a controlled way. Implementation is often more about deciding what to expose and under what rules, rather than technical complexity (since the SDKs handle a lot). One team described their experience: they started with just six essential tools as an MCP server for their fintech app, got those working well, then gradually expanded to more tools once the pattern was proven[125][126]. This “start small, think big” approach is wise. MCP’s standardized nature means even those initial small wins are future-proof – they fit into the larger ecosystem. And as adoption grows, implementing MCP is becoming not just a technical task but a necessary skill for integrating AI in enterprise environments. It provides a clear pathway to move from isolated AI demos to fully integrated, context-rich AI solutions deployed in production.

Sources: The information in this report was gathered from the MCP specification and documentation[7][121], industry articles and announcements (e.g. Anthropic’s introduction of MCP[2], TechCrunch and VentureBeat coverage of OpenAI and Google’s adoption[127][128]), expert analyses[92][93], and real-world case studies shared by companies like Dynatrace, Apollo, and others[69][59]. These sources provide detailed insights into MCP’s design, its comparison with other AI integration approaches, and practical lessons from early deployments. The citations throughout the text refer to these references for verification and further reading.

 

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[59] Apollo GraphQL Launches MCP Server: a New Gateway Between AI …

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[80] An Open-Source MCP-FHIR Framework – arXiv

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[81] Kartha-AI/agentcare-mcp: MCP Server for EMRs with FHIR – GitHub

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[101] RegGuard MCP Server | MCP Servers · LobeHub

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[116] Work with Reports in MCP | Salesforce Trailhead

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