How AI "Learns" to Use Tools? The Full MCP Blueprint.

How AI "Learns" to Use Tools? The Full MCP Blueprint.

Introduction: Your Personal AI Translator

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Imagine you're trying to talk to different people from all over the world, but each person only speaks one language – and a different language for each one! To get information from someone who only speaks French, you have to learn French. To get info from someone who only speaks German, you have to learn German. Sounds like a total nightmare, right? Learning just five languages would be super tough!

But what if you had a super-smart friend—a translator—who understands all languages?

  • You talk to your translator friend in English.
  • They figure out exactly what you want to know.
  • They then pick the right person (the one who knows the answer) to talk to.
  • They get the answer and tell it back to you in English.

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See? Much simpler!

This "translator" is basically what a Model Context Protocol (MCP) is for AI! It's like a universal translator that lets your AI (which we'll call the Agent, or the main brain of your AI app) talk to all sorts of other "people" or "things" (like tools or special data sources) using just one simple, standard language.

Think about it: Big AI models, like the ones that write essays or chat with you, are super smart. They know a lot from all the data they were trained on, like a giant encyclopedia in their brain. But their knowledge is frozen in time from when they were last updated. They don't know what's happening right now in the world (like today's weather), or how to do specific actions (like sending an email or calculating something complex).

To do that, they need to use external tools, just like you might use a calculator for math or a map for directions. This is where MCP comes in. It's like the USB-C cable of the AI world – it creates a standard, secure way for any AI to plug into and use any tool reliably.

We're starting this "MCP crash course" to explain exactly how it works. We'll break down the tricky parts, give you real-world examples, and show you how to actually build things with it.

By the end, you'll get:

  • What MCP is and why it's a game-changer.
  • How MCP helps AI understand what's happening right now.
  • How AI uses MCP to get the info it needs dynamically.
  • How to connect AI models to tools and other capabilities safely.
  • How to build your own awesome, modular AI "workflows" using MCP.

In this first part, we will focus on laying the foundation by exploring what "context" means in the world of LLMs, why older ways of managing it weren't enough, and how MCP emerges as a robust solution to these limitations.

What You Should Already Know

Don't worry, you don't need to be an AI genius! Just know a bit about Python programming (basic coding) and have a general idea of what big AI models (LLMs) are.

Let's get started!

How AI Manages "What It Knows Right Now" (Context)?

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When you talk to an AI, it uses a "brain space" called its context window. This is like a small chalkboard where the AI writes down everything it needs to know right now to answer your question. It includes your question, past chat messages, instructions, or any extra data you give it. The AI's answer is only based on what's on this chalkboard and what it learned during its initial training.

But here are the catches:

  • Limited Chalkboard Space: That chalkboard isn't endless! AIs have a limited context length. If you give it too much information, some of the older stuff just gets erased because there's no room. The AI can't "see" it anymore in that single moment.
  • Old Textbooks: AIs are trained on massive amounts of data, but only up to a certain date. It's like they have a super-thick textbook, but it was printed last year. They won't know about anything that happened after the book was published.

So, context management is all about how we supply new or specific information to the AI to help it with its "old textbook" problem or to fit more on its "chalkboard." It's like giving the AI a fresh newspaper or a specific report it needs now.

Old Tricks for Managing AI's "Memory"

Before MCP came along, developers used some basic tricks to help AIs manage their context:

  • Cutting Off Old Parts (Truncation & Sliding Windows): Imagine you're chatting with a friend, and you only remember the last few things they said. For long conversations with an AI, developers would just keep the most recent messages on the "chalkboard" and erase the really old ones. This keeps the chat moving, but important older details might get completely lost.
  • Summarizing (Summarization): Another trick was to take a super long document or conversation and write a short summary of it. Then, they'd give that summary to the AI. It's like reading the "too long, didn't read" (TL;DR) version of a chapter. While this gets the main ideas, a bad summary could miss important stuff or even get things wrong. Plus, making good summaries on the fly is a lot of work!
  • Fill-in-the-Blanks (Template-Based Prompts): Developers would create "fill-in-the-blank" questions for the AI. Like: Here is some important info:

Here is some important info: [____]. Now, use this to answer the question: [____].        

  • This made sure the AI got the right data in the right spot. But the tricky part was that someone else (usually the developer, or another program) had to go find or create that [important info] part. It was a lot of manual work, especially with tons of knowledge.

Even with these tricks, the AI's "chalkboard" still had a hard limit. If the information didn't fit, or wasn't fetched, the AI couldn't magically know it. These methods were like clever workarounds. There was no easy way for the AI to say, "Hey, I need to go look something up myself!" It just passively waited for whatever information was given to it.

This brings us to why simple "prompt engineering" (just telling the AI things in different ways) wasn't enough on its own.

Before MCP: The "Struggles" of Connecting AI to the World

To really get why MCP is so cool, let's look at how people tried to make AI do more before it existed, and why those ways were often messy.

Just Talking (Static Prompting)


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In the very beginning, using an AI was like just telling it everything it needed to know in one big speech. If the AI didn't know something (like today's weather or a specific piece of data from a company's records), it had no way to find out.

It's like the AI only knew what was in its school textbook from last year. Developers had to manually feed it every single new piece of information (which was annoying and had limits), or just give up on the AI doing certain tasks. This one-way street made AI pretty limited.

TThe "Smart Friend" Who Looks Things Up (Retrieval-Augmented Generation - RAG)

A huge improvement was letting AIs use external dathe "Smart Friend" Who Looks Things Up (Retrieval-Augmented Generation - RAG)

A huge improvement was letting AIs use external data. This was like having a "smart friend" who could go to the library (a database or document collection) and find specific documents or facts. Then, that friend would bring the information back and add it to the AI's chalkboard.

In a RAG setup, an outside system (not the AI itself) would do the searching. The AI just received the results. This was great for getting up-to-date info or special knowledge, but the AI was still a passive listener. It wasn't asking, "Hey, friend, go search for this!" Instead, the developer had to tell the friend to search first.

Plus, RAG mainly helped with looking up information. It didn't help the AI do things or use other tools (besides searching for text).

Playing "Follow the Leader" (Prompt Chaining and Agents)

Some advanced apps began using Agents, which are like little AI "managers." Here, the AI's answer could be interpreted as a command to do something.

For example, you might ask an AI, "What's the weather in San Francisco?" and the AI would say something like, TOOL_CALL: 'get_weather_tool', 'San Francisco'. Then, a different part of the system would see that, actually run a weather app, and feed the result back to the AI.

This "Reasoning + Action" (ReAct) idea was powerful, but it was like a secret code. Every developer made up their own secret code for how the AI should ask for a tool. So, one AI might say SEARCH: 'weather in SF', another might say CALL_FUNCTION('weather', 'SF'). This made it really hard to connect new tools because you had to learn each AI's "secret code" every time. There was no common way to talk.

The "Fill-in-the-Form" Way (Function Calling Mechanisms)

Then, in 2023, big AI companies like OpenAI introduced function calling. This allowed developers to define specific "functions" or "tools" that the AI could ask for by name.

When you asked the AI a question, instead of just a text answer, it could decide to "call a function" (like getWeather) and return a neat, structured JSON object (which is like a structured way of organizing data) that said exactly which function to call and what info to send with it.

For example, the AI might respond with something like this instead of just text:

{
  "tool_calls": [
    {
      "id": "call_abc123",
      "function": {
        "name": "getWeather",
        "arguments": {
          "location": "San Francisco"
        }
      },
      "type": "function"
    }
  ]
}        

This was way more organized than hoping the AI would type SEARCH: ... in plain text. This more structured way of asking for tools was a big step towards a common language.


Why MCP is a Game-Changer: The Universal Adapter

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So, we've seen how AIs started trying to reach beyond their "textbook knowledge" and use tools. But all those older ways were still like having different plugs for every single appliance in your house – your toaster, your phone charger, your lamp, your TV... each needing a unique outlet! What a mess!

This is where MCP steps in as the ultimate solution. It solves what we call the M x N integration problem. Imagine you have M different AI models (like different brands of AI) and N different tools (like weather apps, calculator apps, email apps). Without MCP, you'd need to build a custom "connector" between each AI and each tool. That quickly adds up to tons of custom work!

MCP acts like the universal USB-C cable or the standard wall socket for AI. It creates one, single, clear way for any AI to talk to any tool.


A Sneak Peek at MCP's Structure (The Team Behind the Scenes)

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MCP achieves this by defining clear roles:

  1. The Host (Your AI App): This is the main AI application you're building, like a smart chatbot, an AI assistant, or an AI writing tool. It's the "brain" that needs to use tools.
  2. The MCP Client (The Expert Translator): This is a special part inside your Host. Its job is to "speak MCP" perfectly and handle all the low-level communication with the external tools. Think of it as the highly skilled diplomat who knows exactly how to talk to everyone.
  3. The MCP Server (The Tool Shed / Expert Provider): This is where the actual tools and data sources live. It's like the "tool shed" filled with different specialized tools (e.g., a weather station, a calculator, a database of facts) or a "specialist" who knows how to perform certain actions. The Server listens for requests from the Client and performs the action.

Here's a simple way to visualize their connection:

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Building Trust and Control

One super important thing MCP brings, and something good AI practices (like those emphasized by companies like Anthropic) care about, is safety and control. Because MCP uses a structured, clear way for AIs to request tools, it makes it easier to:

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  • Understand What's Happening: You can clearly see which tool the AI wants to use and why. It's not just guessing what the AI meant.
  • Get Permission: For sensitive actions (like sending an email or making a purchase), the system can easily pause and ask you for permission. It's like your parents asking "Are you sure you want to buy that?" before you click "confirm order" online.
  • Handle Errors Better: If a tool can't work (e.g., the internet is down for the weather tool), MCP's structure helps the system understand the error and tell the AI, so it can try something else or explain to you what went wrong.

This makes integrating tools with AI much more reliable and trustworthy.

What's Next?

Now that we understand why MCP is so important and how we got here, in Part B, we'll dive deeper into the different types of capabilities MCP offers (like Tools and Resources) and how the AI actually uses them to become truly dynamic and powerful. Get ready to see MCP in action and understand how these pieces fit together!

Manish Sunthwal

Offline-First AI Advocate | Sr. TPM | Prompting, Vibe Coding, Prototyping AI

2mo

Thanks for sharing, Manish. Very nicely explained the most Emerging topic. It was indeed a good read.

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