Why?
Your final year project is an important part of your resume as a fresh graduate (who probably has no experience yet), so it represents your skills and what you've learned through your learning journey to get this degree.
What?
Unlike regular projects within courses, the FYP is a bigger project of a wider scope, requires applying your skills in many courses. In Data Science in LU, student is expected to implement a project which represents the data science process (collecting cleaning data, analysis, modeling...) preferably wrapped within an interface (depending on each project). However, the project scope is still somewhat flexible. For example, one can do a full-stack website/app based on data, or can focus on a deep learning project, or new AI topics like Agentic AI.
Notes
Final year project is a team project usually (2-3), although one can do it alone. Usually, the team suggests the project idea, and the project supervisor accepts or rejects it. Sometimes the supervisor himself would suggest a project idea if applicable.