“Google Suggest” is a feature designed to make searching both faster and easier that automatically recommends options for the rest of your search term as you type based on the most popular searches. To provide its recommendations Google Suggest needs to know what you've already typed, so these partial queries are sent to Google. For 98% of these requests, we don't log any data at all and simply return the suggestions. For the remaining 2% of cases (which we select randomly), we do log data, like IP addresses, in order to monitor and improve the service.
There's been quite a bit of comment in the last few days about how Google Suggest is used in Google Chrome. However, given the concerns that have been raised about Google storing this information and its limited potential use, Google decided to anonymize it within about 24 hours in the 2% of Google Suggest requests we use. This will take a little time to implement, but we expect it to be in place before the end of the month.