The Model Context Protocol (MCP) is an open standard introduced by Anthropic to standardize how AI applications connect with external tools, data sources, and systems. MCP provides a universal standard for connecting AI to data and tools, allowing developers to use a single plug-and-play interface. It helps build agents and complex workflows on top of Language Model Models (LLMs) by providing pre-built integrations, flexibility to switch between LLM providers, and best practices for securing data. MCP differs from function calling, which focuses on generating structured instructions, while MCP focuses on managing the execution of LLM-generated instructions across external tools or services. An MCP server for Dynamics 365 Business Central allows integration of ERP-powered actions or data directly in MCP-compliant Copilot tools.
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