Think of MCP as a universal translator for digital tools and AI. It’s a standard that lets smart systems – like those powered by large language models (LLMs) – work with all kinds of real-world business apps and data. With MCP, these AI “agents” can get what they need and do useful stuff, not just spit out text. Right now, connecting AIs to all your company’s different tools can be a headache. MCP is like a plug-and-play solution, making sure different software can talk to each other without lengthy custom code.

• Model: This is the part that helps you connect different services and set up multi-step tasks, whether you’re a developer or a business user.
• Context: This lets AI understand what each service can do. For example, if you hook up Gmail, the AI can send messages, sort your inbox, archive stuff, and so on..
• Protocol: This is an open-source way for any app or data provider to let AI tap into its services – think of it like giving AI the keys to your business tools, in a secure, standard way.

Put simply, MCP makes it much easier for AI to work with all kinds of business software and data, no matter where they come from – including payments or transaction data.

Big tech companies like OpenAI are already working with MCP, and you’ll soon see it in things like the ChatGPT desktop app. This means AI and your business tools can swap info much more easily, making AI truly helpful at work.Lots of industries are jumping on board – retail, banking, travel, you name it. Some examples:

• Retailers are using AI agents to give customers better recommendations and support, like Walmart’s new AI-powered shopping assistants.
• Finance teams use AI agents with MCP to pull up transaction records or merchant info just by asking a question, saving time on reporting and audits.
• Compliance teams can set up smart assistants to check regulations and customer data, making risk checks much faster and more reliable.

All of this is helping businesses become more efficient, secure and focused on what matters most: their customers.

Of course, there are a few things to keep in mind. Some companies are a bit nervous about opening up their systems, worried they might lose their edge. There’s also the chance that relying too much on “middleware” could slow things down. And while MCP makes a lot of things easier, it’s not a silver bullet for all security issues – you’ll still need strong oversight.

MCP could help companies move from clunky, closed-off systems to more open, flexible setups that match the way people work. As teamwork and fast decision-making become even more important, MCP is set to play a big role in what business AI looks like next.Bottom line? The future of AI is all about working together – and MCP will likely help to make that happen.

To learn more about the future of AI and payments, contact your NatWest representative or get in touch.