MCP (Model Context Protocol) is yet another 3-letter technology acronym that you are going to hear a lot about over the next few years. MCP is a way for AI to interact with your ERP system without needing to know the underlying database or API (application programming interface – a connection between computers or software programs).
A typical architecture per ChatGPT is as below:
You would use natural language like you’re probably already doing with ChatGPT or Claude to get what you want such as finding out the number of available units of a certain inventory item or asking for a custom report. Some of the ERP vendors like NetSuite are using it – see https://www.netsuite.com/portal/products/artificial-intelligence-ai/mcp-server.shtml. It’s not a good sign if your ERP vendor has not deployed MCP or has no plans to do so.