Recently Waterloo launched an Artificial Intelligence Institute to act as a focal point for research and other activities related to AI. It’s a joint effort between Engineering and Mathematics, but includes researchers from other areas too. A short introductory video is available that highlights a few interesting points.
The AI Institute’s website also has a list of some interesting feature projects, including cancer detection, forest fire control, and hockey analytics. Although these are advanced research projects with Masters and PhD students, it is not unusual to find undergraduate students participating too, either as co-op work term students, or part-time as undergraduate research assistants (during academic terms). There are almost 100 faculty members involved, so lots of variety of potential opportunities.