Model Context Protocol (MCP)
MCP is an open standard that connects AI agents to data systems and business logic through a common interface, instead of bespoke APIs for every integration.
The Model Context Protocol (MCP) is an open standard for how AI agents get context from, and take actions in, other systems. Rather than building a custom integration for each agent and each application, an application exposes an MCP server, and any compatible agent platform can connect to it.
For businesses the practical benefit is reuse and consistency: the same agent can work across systems, the same system can serve many agents, and data access, permissions and auditability follow one pattern rather than a dozen. Microsoft's Dynamics 365 ERP MCP server, for example, lets agents read and write data, drive application forms and invoke business logic — with everything scoped by the agent's security role, so it only ever sees what its role allows.
MCP servers can be added as tools inside Microsoft Copilot Studio, which is how an agent gains a whole application's capabilities in a single connection.