I was thinking of an idea that i could, as an engineer, implement but then realized that it would require a lot of knowledge in algorithms and programming to do(honestly, i don't have much knowledge in algorithms to try this). But here's the Problem:
Design a Game of chess which is programmed firstly in only the basic moves of the Game. i.e., Know what moves each peices are allowed to make and the priority that each peice holds on the chess board.Mind you this is going to be a two player game where the "other" player is actually a Human. The Aim is to track and store the moves of the Human (as well as the results of the move) and then using some sort of a learning algorithm refer back to the "successful" moves of the Human player to play the next game.

Yes. this problem is an example of an Artificially Intelligent System. the downfall is that its only 'T-1' as smart as 'T'; T being the Level of Training recieved by the system. All you need to do this is some knowledge in algorithms and Good Programming skills. Lets see if you're upto the challenge.

you don't have to be a 4th year student to do it. i think this could provide some inspiration: http://aalfred.wordpress.com/