The Model Context Protocol, or MCP, is an open standard introduced by Anthropic in late 2024 for connecting AI applications to external tools and data. It is often described as a common plug for AI: build a connector once and many compatible AI assistants can use it.
An MCP server wraps a system, such as a product database, a booking tool or a document store, and tells the AI what it can read or do. An AI application acts as the client and discovers those capabilities automatically. This replaces writing a separate custom integration for every AI and every system.
For retailers and venues, MCP means an AI assistant can potentially reach inventory, sales reports or the customer database through standard connectors, where vendors offer them. It is most common today in developer tools and a growing range of business software, so availability for any given POS or CRM varies.
Treat an MCP connection like giving someone a login. Check what the server can access, whether it can change data or only read it, who maintains it and how access is authenticated. Only connect servers from sources you trust, and prefer read-only access to start.
It matters because it lowers the cost and effort of linking AI to existing systems, which is usually the hardest part of making AI useful in a real business.