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HR Technology

What is Model Context Protocol (MCP)?

Definition

An open standard for connecting AI assistants to external data sources and tools. MCP allows AI clients such as Claude Desktop, Cursor, and VS Code to securely read from and write to business applications through a structured server interface, enabling natural-language interaction with software systems.

UK Context

MCP is technology-agnostic and not specific to any jurisdiction. In an HR context, it allows AI assistants to query employee records, manage leave requests, and run reports while respecting GDPR data handling requirements. Organisations using MCP should ensure appropriate access controls and audit logging are in place.

Best Practices

  • Restrict MCP API keys to specific users or roles and rotate them regularly
  • Enable audit logging for all MCP tool invocations to maintain a clear data access trail
  • Review which MCP tools are exposed and limit write access to authorised administrators

Frequently Asked Questions

What is the Model Context Protocol used for in HR software?

MCP lets AI assistants like Claude connect directly to HR systems. Users can ask natural-language questions such as "Who is off next week?" or "Approve Sarah's leave request" and the AI tool calls the HR system on their behalf, returning structured results.

Is MCP secure for handling employee data?

MCP connections are authenticated with API keys and scoped to the organisation. All tool invocations are audit logged. Organisations should follow the same access-control policies they apply to any API integration, including role-based permissions and key rotation.

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