Agent Tools vs MCP Tools

A local agent tool is typically a function registered directly with the runtime. An MCP tool is exposed by an MCP server and reached through a protocol boundary. Both can appear to the model as callable tools, but their operational characteristics differ.

AreaLocal toolMCP tool
ExecutionInside app/runtimeExternal server/process
DiscoveryUsually static codeProtocol discovery
Reuse across hostsOften lowPrimary benefit
LatencyUsually lowerMay include process/network hop

Use local tools when

The capability is tightly coupled to your app, cheap to execute in-process, or unlikely to be reused.

Use MCP when

The capability deserves a reusable service/process boundary, should work across hosts, or needs independent deployment and governance.