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Glossary

MCP (Model Context Protocol)

October 27, 2026
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What is MCP (Model Context Protocol)?

MCP (Model Context Protocol) is an open standard that lets AI assistants and agents connect to business systems and work with their data as tools. An AI app that supports MCP, such as Claude, ChatGPT, or Cursor, can read records, run reports, and take actions in a connected system, with every action bound to the permissions of the user who connected it. Anthropic introduced MCP in November 2024, and it has become the common way AI apps connect to software platforms.

How MCP works

MCP has two sides. The software platform exposes an MCP server: a catalog of tools describing what an AI app may read or do in that system, such as listing suppliers or querying spend. The AI app acts as the MCP client: it connects to the server, discovers the available tools, and calls them on the user's behalf. The user authorizes the connection through a consent screen that names the app and the access it requests, and the connection can be revoked at any time.

Why MCP matters in procurement

Procurement data answers questions people ask all day: which suppliers are approved, what a contract allows, where spend stands against budget. With MCP, those answers arrive inside the AI tools people already use instead of requiring another login and another export. A stakeholder asks their AI assistant whether an approved supplier exists for a purchase, and the answer comes from live procurement records. An AI agent preparing a renewal brief pulls the actual contract and spend data rather than working from a stale spreadsheet.

MCP at Levelpath

Levelpath, the autonomous procurement platform, exposes its public API as an MCP server, so MCP-capable AI apps such as Claude, ChatGPT, and Cursor can work with Levelpath data directly. A user connects an app through a standard OAuth consent screen showing the app's name and the access it requests. A connected app can never exceed that user's own Levelpath permissions, and the user can revoke or restrict it at any time. Administrators decide whether MCP connections are accepted at all and who may connect: access is off by default until an administrator turns it on, and the policy is checked on every request. For automation, service accounts and personal access tokens give scripts and AI agents the same permission-bound access.

Frequently Asked Questions

Is MCP secure for enterprise procurement data?

MCP access in Levelpath is permission-bound at three levels. The administrator controls whether MCP is accepted at all and who may connect, the connected app can never exceed the permissions of the user who authorized it, and the user can revoke the connection at any time. The access policy is checked on every request.

Which AI apps can connect to Levelpath through MCP?

Any AI app that supports the Model Context Protocol can connect, including Claude, ChatGPT, and Cursor. The user adds Levelpath as an MCP server in the app and approves the connection through an OAuth consent screen.

What is the difference between MCP and an API?

An API requires a developer to write and maintain code for each use case. MCP lets an AI app discover a system's tools and call them directly in conversation, with no custom integration code. MCP runs on top of the platform's public API and inherits its permissions.

What can an AI assistant do once connected over MCP?

The assistant can read the records the connecting user can read and take the actions that user could take in the product, such as looking up suppliers, checking contract terms, or querying spend. Anything outside the user's permissions stays out of reach.

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