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arXiv AI By Olympia Saha, Amy Wang, Srinivasan Manoharan

Hybrid Semantic Tool Discovery for Enterprise MCP Gateway: Architecture and Implementation

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Hybrid Semantic Tool Discovery for Enterprise MCP Gateway presents SCOUT, a system that addresses two major challenges in large language model (LLM) agent tool usage: a context‑engineering bottleneck and a tool discoverability barrier. SCOUT reframes tool exposure as a context‑selection problem, injecting only relevant tools into the model’s context window and providing two MCP meta‑tools—tool_search and execute_tool—to perform hybrid retrieval via BM25 and dense vector search. In production at PayPal, SCOUT cuts MCP tool‑token consumption by 99%, dramatically reducing per‑query inference cost while remaining model‑agnostic and requiring no client‑side changes.

Machine-generated by The Flow from the publisher's headline and feed description — not written or checked by a human. The full article lives at arXiv AI.

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