Imagine a world where every smart device in your home needed a different electrical outlet. Frustrating, right? Now, think about how much easier life became with universal standards like USB-C.

That is essentially what the Model Context Protocol (MCP) is doing for Artificial Intelligence.

At its core, MCP is a standardized language designed to let different AI tools - including Microsoft’s own Copilot ecosystem - communicate with each other and, crucially, with your Business Central data seamlessly.

Before MCP, integrating AI into your ERP was like trying to connect devices with a tangle of unique, incompatible cables. It required expensive, custom-built connections that were hard to maintain.

With MCP, this changes. It acts as a central hub, a universal translator, allowing you to plug different AI capabilities directly into your business data. This aligns perfectly with Microsoft’s vision for a unified, intelligent cloud.

But for those of us not writing code, what does this "technical side" really mean, and why is it a breakthrough for your Business Central environment?

The "technical" side simplified

To understand the genius of MCP, we need to address the biggest limitation of standard AI models: they don’t know your business.

An AI model (like the one powering Copilot) is like a brilliant new hire. They have read every business textbook in the world, but on their first day, they don't know your customer list, your inventory levels in Business Central, or the specific discount structure you negotiated yesterday.

Here is the technical shift MCP creates:

Instead of developers having to manually "copy-paste" data to the AI or build fragile, custom bridges, MCP creates a standardized, secure "tunnel" between the AI (the brain) and Business Central (the memory).

The old way

You ask the AI a question. It guesses based on general knowledge because it can't "see" inside your ERP.

The MCP way

You ask a question. The AI uses the MCP "tunnel" to securely knock on the door of Business Central, find exactly the record you need (and nothing else), and give you an answer based on live facts.

Let’s take a look at a use case, highlighting the role of MCP.

Scenario: you ask Copilot “What’s the latest status of order 5482?”

Process:

The Large Language Model (LLM) interprets the question and generates the required action (e.g., “Get shipment status for Order 5482”).
The LLM sends this action request to the MCP server.
The MCP validates it, calls the external logistics API, retries if needed, and normalizes the response.
Once the status is retrieved, the MCP returns the clean data to the LLM.

Result: The LLM transforms that raw data into a simple human-friendly answer and shows it back to the user in Business Central.

Why this is huge for Business Central users

As a Microsoft partner, we see MCP as a critical enabler for the future of Dynamics 365. It turns your ERP from a passive system of record into an active participant in your AI strategy.

1 | Real-time accuracy

Because MCP allows AI to query Business Central in real-time, the AI stops guessing.

Scenario: you ask Copilot to draft a sales email.

Result: via MCP, it checks live inventory levels and current pricing in Business Central before writing the email. It won't promise stock you don't have.

2 | Enterprise-Grade security (The Microsoft Standard)

This is the most critical point for business leaders. MCP isn't an "open door" to your data; it’s a security checkpoint. When implemented correctly in a Microsoft environment, MCP respects your existing governance. It integrates with Microsoft Entra ID (formerly Azure AD). This means the AI can only "see" what the specific user asking the question is allowed to see. If a salesperson can’t access the General Ledger in Business Central, their AI agent can’t either.

3 | Future-Proofing your investment

The AI landscape is moving at breakneck speed. New models are released monthly. Because MCP is an open standard supported by industry leaders (including Microsoft’s recent integrations into Copilot Studio), you aren’t locked into a "black box" solution. You can upgrade the "brain" of your AI without having to rebuild the connection to Business Central every time. It keeps your architecture agile and your costs down.

The Possibilities: from Chatbots to "Agents"

We are just at the starting line. MCP is the technical foundation that moves us from simple "Chat AI" to "Agentic AI": autonomous agents that work for you inside Business Central.

Imagine an MCP-enabled agent that doesn't just answer questions, but performs tasks:

Scenario: an agent notices a shipment is delayed.

Action: using MCP, it accesses vendor data in Business Central, identifies an alternative supplier, drafts a Purchase Order, and sends a Teams notification to the purchasing manager for one-click approval.

How NORRIQ can help

At NORRIQ, our mission is to simplify your business. We believe technology should work for you, not the other way around.

MCP is a powerful piece of the puzzle, but it requires the right strategy to implement securely. Whether you are looking to get more out of Copilot, automate workflows in Business Central, or prepare your data for the future of AI, we are here to guide you.

Ready to turn your Business Central data into active intelligence? Let’s have a coffee and discuss how we can future-proof your ERP.

We’ve all heard the AI hype. But how do we get these powerful tools to actually understand your specific business data? The answer lies in a new standard called MCP, and it’s changing the game for Microsoft Dynamics 365.