AI plugins (MCPs) constantly consume valuable context window space, even when not in use. Integrating tools via Command-Line Interfaces (CLIs) is more efficient. The AI can execute local CLI commands as needed, providing full tool functionality without the persistent context overhead.

The vision for Model Context Protocol (MCP) is to let AIs perform complex, multi-app tasks. However, translating a full API like Stripe's into MCP tools overwhelms current models' context windows, making them confused and ineffective. This forces developers to handcraft a small subset of tools.

Users often fail with MCP by expecting it to handle complex workflows instead of simple tool interactions. A key mistake is connecting too many irrelevant servers, which pollutes the AI's context window with unused tool descriptions and degrades performance. Keep the toolset minimal and relevant to the task.

The "Agent Skills" format was created by Anthropic to solve a key performance bottleneck. As capabilities were added, system prompts became too large, degrading speed and reliability. Skills use "progressive disclosure," loading only relevant information as needed, which preserves the context window for the task at hand.

Simply giving an AI agent thousands of tools is counterproductive. The real value lies in an 'agentic tool execution layer' that provides just-in-time discovery and managed execution to prevent the agent from getting overwhelmed by its options.

Constantly including all available tool descriptions in an LLM's context window is expensive. An MCP proxy or gateway can dynamically provide only relevant tools, dramatically cutting input token consumption and improving performance, especially for smaller models.

To solve the problem of MCPs consuming excessive context, advanced AI clients like Cursor are implementing "dynamic tool calling." This uses a RAG-like approach to search for and load only the most relevant tools for a given user query, rather than pre-loading the entire available toolset.

Instead of loading large context files on every turn, use "skills." The agent only sees a skill's name and description initially, loading the full instructions only when needed. This method, called progressive disclosure, drastically saves tokens and improves performance.

Exposing a full API via the Model Context Protocol (MCP) overwhelms an LLM's context window and reasoning. This forces developers to abandon exposing their entire service and instead manually craft a few highly specific tools, limiting the AI's capabilities and defeating the "do anything" vision of agents.