It is an algorithmic method developed by google in late 2008 that shows useful related queries when one start typing on the google search box.

Google suggest which is know known as google autocomplete was first brought into use by google for general public use was in the year 2009 and that too for only two privileged country in the world i.e USA & Germany. Few years later it was introduced throughout the world to enable google user reach result faster without writing for a new search.But now auto complete has become more advance as now a days it suggest not only words but also many complex sentence also.
How does it function? The whole mechanism is works on a technology based on javascript that enables search engine to communicate with the server before the whole word is completed. This java mechanism is called AJAX . It was first developed for faster communication between web application and server but google stated it using in its search engine.Ajax transfers our data to the server which enables google to predict what we are searching as it transfers our location,country,city & previous searches that we had done also.
What type of data does it uses for giving suggestions? 1) Search frequency- Means how often a particular word,phrase, combination of phrases or words are successively searched. 2) Search patterns or search behavior- means it analyse data of past searches done before giving suggestions. 3) Search location- Google by accessing the location takes into account the wholesome behavior of a person and this enables ajax to successfully predict and provide relevant suggestions.