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How to Prepare for the Next Wave of AI Innovation | Entrepreneur

by Brand Post
July 8, 2025
in Business
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How to Prepare for the Next Wave of AI Innovation | Entrepreneur
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Opinions expressed by Entrepreneur contributors are their own.

The buzz around artificial intelligence is undeniable. It’s revolutionizing industries, automating tasks and promising unprecedented growth. As an entrepreneur, you’ve likely explored ways that you can start incorporating this powerful tool into parts of your business, such as experimenting with generative AI for marketing copy or trying an AI-powered scheduling tool. Unfortunately, for many small business owners, the promised land of AI-driven transformation feels more like a mirage.

The challenge is often a fragmented approach to AI. You might use one AI tool to design social media content, another to manage your customer database and a third to interact with customers on your website. Because these tools are disconnected, they struggle to work cohesively, often relying on humans to act as a middleman, transferring information or cleaning up outputs. The results end up being generic insights that lack depth, leaving you wondering if AI is worth all the hype.

This isn’t a failure of effort. Most AI tools operate on a vast, general knowledge base, delivering broad strokes rather than the nuanced details your unique business demands. But a new frontier is emerging that promises to bridge this gap. Instead of a generic AI, a concept known as Model Context Protocol (or MCP) can deliver highly personalized, strategically relevant solutions.

MCP works by creating a framework that allows numerous AI models to interact based on a common understanding of a single source of context — your business. Rather than just relying on broad training data, AI models using MCP can tap into information that is relevant to your business, such as your customer data, past interactions, brand standards and strategic goals. This makes their outputs incredibly precise, actionable and personalized to your business.

While MCP is still in its early stages, there are critical steps that entrepreneurs can take today to prepare their business for this incoming wave of innovation. By laying the right groundwork now, you can get a jump start on maximizing the value of AI for your business.

Related: 3 Ways to Prepare Your Business For an AI Future

1. Create a clear brand identity

If you ask an AI to create marketing material, you’ll often get something generic. To make the AI truly effective, you want it to create content specific to your brand’s unique identity. Start by solidifying your brand identity by creating a brand profile.

This should include your company’s mission, target consumer profile, brand voice (is it formal, quirky, empathetic or direct?) and brand elements like logos and colors. This information becomes important context that an AI model can leverage to produce content and communications that truly resonate with your brand.

2. Map out your data and systems

To harness the full power of MCP, you need to know where all your data is housed. A solid best practice is to start a data inventory across all your systems. For best results, it’s wise to prioritize cleaning and standardizing this data, ensuring consistency in names, addresses, product descriptions and categories. The more organized and accessible your data is, the richer the context you can provide to AI models, resulting in better outcomes and decisions.

3. Provide contextual information

Context is where AI often struggles. Without sufficient background information, it tries to fill in the blanks, which can lead to irrelevant or inaccurate outputs. A good approach is to make sure you have information readily available that will give the AI enough context to make better decisions.

For example, create a centralized folder or knowledge base that contains important contextual information such as your company history, FAQs, product manuals, internal policies, standard responses and key client information. This context library will be a foundational resource for AI working under an MCP model.

Related: Your Company’s AI Strategy Is Probably Backwards. Here’s Why — and How to Fix It.

4. Engage with technology providers

It’s important to understand what integrations are coming in the future from your current technology stack. Reach out to your current software and tool providers to inquire about their plans for AI integration, specifically their support for contextual capabilities and APIs. Now might be the right time to evaluate if certain software or tools will be better prepared to provide MCP options, helping you make informed decisions about potential replacements.

5. Foster a culture of experimentation

MCP is an evolving field. The most successful entrepreneurs will be those willing to experiment, measure the results, and continuously refine their approach. Encourage your team to explore how AI can solve specific business problems, given your unique context, data, and goals. Even with current AI tools, you can simulate MCP by providing follow-up prompts that add more context, like breaking down a request into multiple, more detailed steps.

6. Create guidelines for data security and privacy

As you feed your proprietary business data into AI models, understanding the security and privacy implications is paramount. Before implementing MCP or other AI tools that leverage your data, it’s important to establish clear data governance policies. These policies can help protect your company and guide your team, ensuring sensitive information is handled responsibly and in compliance with relevant regulations.

Related: Balancing AI Innovation with Ethical Oversight

The future of AI for entrepreneurs isn’t about bigger, more complex models. It’s about better integration and context. Model Context Protocol (MCP) unlocks AI’s true potential for small businesses, making it personal, relevant and truly integrated. By focusing on providing the right context, you’ll gain a powerful competitive edge, working smarter and breaking through existing limitations.

Ready to break through your revenue ceiling? Join us at Level Up, a conference for ambitious business leaders to unlock new growth opportunities.

The buzz around artificial intelligence is undeniable. It’s revolutionizing industries, automating tasks and promising unprecedented growth. As an entrepreneur, you’ve likely explored ways that you can start incorporating this powerful tool into parts of your business, such as experimenting with generative AI for marketing copy or trying an AI-powered scheduling tool. Unfortunately, for many small business owners, the promised land of AI-driven transformation feels more like a mirage.

The challenge is often a fragmented approach to AI. You might use one AI tool to design social media content, another to manage your customer database and a third to interact with customers on your website. Because these tools are disconnected, they struggle to work cohesively, often relying on humans to act as a middleman, transferring information or cleaning up outputs. The results end up being generic insights that lack depth, leaving you wondering if AI is worth all the hype.

This isn’t a failure of effort. Most AI tools operate on a vast, general knowledge base, delivering broad strokes rather than the nuanced details your unique business demands. But a new frontier is emerging that promises to bridge this gap. Instead of a generic AI, a concept known as Model Context Protocol (or MCP) can deliver highly personalized, strategically relevant solutions.

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Tags: AI toolsArtificial Intelligencebusiness solutionsentrepreneurEntrepreneursinnovationPrepareScience & TechnologySmall BusinessesTechnologyWave

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