Dr Peter Norvig is Director of Research at Google and (co-)author of Artificial Intelligence: A Modern Approach - the most used AI textbook worldwide. In this talk, given at Bay Area AI Meetup at TechShop in Menlo Park, CA in December 2008 he discusses recent directions in AI research at Google and elsewhere. In particular, he discusses the use of Non-Parametric Models in Google's award-sweeping natural language translation systems and recent adoption of non-parametric methods for graphics tasks such as "semantic" editing of snapshot photographs.